The capital budget should be consistent with the firm's:
A) historical 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 strategic plans of the firm to ensure that investments are being made in areas that will support the long-term goals and objectives of the company. Historical growth in sales, current level of debt, and dividend policy are important factors to consider but are not as relevant in determining the capital budget.

The Capital Budget Should Be Consistent with the Firm's