Which of the following is the first stage to the capital budgeting process?
A) forecast all potential cash flows attributable to the alternative projects
B) determine which investment yields the greatest benefit and the least cost to the organization
C) obtain funding and make the investments selected
D) identify potential capital investments that agree with the organization's strategy

Question

Quizplus · Accepted Answer

The first stage of the capital budgeting process is to identify potential capital investments that align with the organization's strategy. This involves evaluating the organization's goals and objectives and identifying potential projects that support those goals. Only after identifying these potential opportunities can the organization move on to the next stages of the process, such as forecasting cash flows and determining the most beneficial investment.

Which of the Following Is the First Stage to the Capital