Effective capital budgeting can improve the timing of asset acquisition and the quality of assets purchased,thereby providing an opportunity to purchase and install assets before they are needed.

Question

Quizplus · Accepted Answer

Effective capital budgeting helps in assessing the profitability and feasibility of investment projects, which can lead to decisions for timely acquisition of assets and ensuring the quality of assets purchased. As a result, businesses can take advantage of the opportunities to purchase and install assets before they are needed.

Effective Capital Budgeting Can Improve the Timing of Asset Acquisition