The process of analyzing alternative investments and deciding which assets to acquire or sell is known as:
A) Planning and control.
B) Capital budgeting.
C) Variance analysis.
D) Master budgeting.
E) Managerial accounting.

Question

Quizplus · Accepted Answer

The process described in the question is capital budgeting, which involves evaluating and selecting investments based on their potential to generate future cash flows. Planning and control, variance analysis, master budgeting, and managerial accounting are all related to financial management, but they do not specifically involve analyzing alternative investments.

The Process of Analyzing Alternative Investments and Deciding Which Assets