Abbott Laboratories, a worldwide health care company, looks to invest $50 million in new technologies for diagnostic instrument systems. This investment into research and development would appear in which of Abbot's budgets?
A) cash budget
B) capital budget
C) operating budget
D) zero-balance budget

Question

Quizplus · Accepted Answer

The investment of $50 million in new technologies for diagnostic instrument systems is a capital expenditure and would therefore be included in Abbott's capital budget, which outlines its plans for investments into long-term assets such as property, plant, and equipment.

Abbott Laboratories, a Worldwide Health Care Company, Looks to Invest