Budgeting that involves decisions such as whether to buy or lease equipment or build a new factory is referred to as:
A) capital budgeting.
B) operations budgeting.
C) facilities planning.
D) strategic planning.

Question

Quizplus · Accepted Answer

Capital budgeting is the process used to make decisions about long-term investments such as purchasing equipment or building new facilities. This type of budgeting is essential for a company's strategic planning and involves analyzing the potential costs and benefits of different investment options. Operations budgeting, on the other hand, focuses on short-term financial planning to manage day-to-day expenses. Facilities planning is more closely related to the physical design and layout of buildings, while strategic planning encompasses the overall direction and goals of the organization.

Budgeting That Involves Decisions Such as Whether to Buy or Lease