Effective capital budgeting can improve the timing of asset acquisition and the quality of assets purchased. By forecasting the needs for capital assets in advance, a firm will have an opportunity to purchase and install assets before they are needed.

Question

Quizplus · Accepted Answer

Effective capital budgeting involves forecasting and planning for the acquisition of capital assets in advance, which allows a firm to purchase and install assets before they are actually needed. This improves the timing of asset acquisition and the quality of assets purchased, giving the firm a competitive advantage in the market.

Effective Capital Budgeting Can Improve the Timing of Asset Acquisition