In addition to justifying how capital dollars are spent, capital budgeting provides a basis for choosing among alternative capital projects.

Question

Quizplus · Accepted Answer

Capital budgeting involves evaluating and selecting among different potential capital projects based on their expected return on investment and other criteria, such as strategic fit, financial feasibility, and risk. By comparing the expected benefits and costs of different investment options, capital budgeting helps managers allocate limited resources more effectively and prioritize investments that can create the most value for the organization in the long run.

In Addition to Justifying How Capital Dollars Are Spent, Capital