The capital budget should be consistent with the firm's:
A) growth in sales.
B) strategic plans.
C) current level of debt.
D) dividend policy.

Question

Quizplus · Accepted Answer

The capital budget should align with the firm's strategic plans because it is a long-term investment decision. The capital budget will help the firm to realize its strategic goals and objectives. The budget should also consider the firm's growth in sales, current level of debt, and dividend policy, but these factors should not be the primary considerations when making capital budgeting decisions.

The Capital Budget Should Be Consistent with the Firm's