Which of the following would be an example of a mandated capital budgeting decision?
A) a powerful political figure wants a manufacturing facility to be located in his district.
B) a solar array installs landscaping to reduce objections from near-by residents.
C) a company must install elevators to comply with the Americans With Disabilities Act (ADA)
D) all of the above.

Question

Quizplus · Accepted Answer

A mandated capital budgeting decision is one that is required by law or regulation, and cannot be avoided or delayed. Installing elevators to comply with ADA regulations would be an example of such a decision since it is required by law. Option A and B are not mandated decisions but rather discretionary choices made by political figures and companies.

Which of the Following Would Be an Example of a Mandated