A capital budget combines all of the other budgets into one detailed plan for monitoring the operations of the firm.

Question

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A capital budget is a specific type of budget that focuses on expenditures related to long-term assets such as property, equipment, and investments. While it may incorporate information from other budgets, it does not combine them into one overall plan for monitoring the operations of the firm. Other types of budgets, such as operating budgets and cash budgets, are used for that purpose.

A Capital Budget Combines All of the Other Budgets into One