Capital budgeting decisions typically fall into which of the following major categories?
I. Developing or expanding products or services
II. Allocating costs to products or services
III. Replacing or reorganizing assets or services
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Developing or expanding products or services (I) and replacing or reorganizing assets or services (III) are both typical categories of capital budgeting decisions. Allocating costs to products or services (II) may be a part of the decision-making process, but it is not typically considered a major category of capital budgeting decisions. Therefore, the correct choice is C.

Capital Budgeting Decisions Typically Fall into Which of the Following