Capital budgeting decisions are relatively easy to reverse.

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve long-term investments that often require a significant amount of time and resources to implement. Therefore, they are generally not easy to reverse. Once a company has made a large capital investment, it may be difficult or costly to undo the decision and recover the funds. Therefore, it is important for companies to carefully consider all relevant factors and make well-informed decisions when it comes to capital budgeting.

Capital Budgeting Decisions Are Relatively Easy to Reverse