The capital budgeting process involves all of the following except:
A)Having department or plant managers submit new investment proposals.
B)Determining which financial institution to use for financing.
C)Evaluating the submitted proposals.
D)Forming a capital budget committee that includes accounting and finance members.
E)Approving or rejecting new investment proposals.

Question

Quizplus · Accepted Answer

The capital budgeting process involves steps such as submitting new investment proposals, evaluating them, forming a committee, and approving or rejecting them. However, determining which financial institution to use for financing is not a part of the capital budgeting process. This falls under the financing decision of the firm, which is separate from the capital budgeting decision.

The Capital Budgeting Process Involves All of the Following Except