Which of the following statements is true concerning the capital acquisitions budget?

Question

Quizplus · Accepted Answer

The capital acquisitions budget is a plan to acquire long-lived assets, such as property, plant, and equipment, and is separate from the sales budget. It is not constructed directly from the values in the sales budget, which only provides information on sales projections. The capital budgeting process involves evaluating potential investment projects and determining their financial feasibility, which is different from the capital acquisitions budget. While plant capacity may be a consideration in the capital acquisitions budget, it is not the determining factor.

Which of the Following Statements Is True Concerning the Capital