Capital budgeting is:

Question

Quizplus · Accepted Answer

Capital budgeting involves making long-term investment decisions in operating assets, such as purchasing new equipment or expanding facilities. It is a systematic planning process that considers the potential profitability and risk of each investment opportunity. Option A describes product line profitability evaluation, which is not specific to long-term investments. Option C refers to broad planning, but not necessarily for capital investments. Option D describes operational planning for the near future, but not necessarily for long-term capital investments.

Capital Budgeting Is