The Four Seasons hotel chain has purchased an existing hotel in Mumbai.To forecast how much it needs to spend to bring the facilities in line with Four Seasons' other five-star hotels,it will use which of the following?
A) a managerial budget
B) a tactical budget
C) a capital budget
D) an operating budget

Question

Quizplus · Accepted Answer

A capital budget is used to forecast expenditures on long-term assets such as property, plant, and equipment. Since Four Seasons is looking to upgrade an existing hotel in Mumbai, a capital budget would be the best choice for forecasting the amount of money needed to bring the facilities in line with other Five-star hotels.

The Four Seasons Hotel Chain Has Purchased an Existing Hotel