Question

What does capital budgeting involve?

a.

Financing decisions in the capital market

b.

Evaluating both investment and financing decisions on the same criterion

c.

Deciding on the appropriate use of current assets in short-term projects

d.

Investing in financial instruments for long-term projects

Posted under IC 89 Management Accounting

Answer: (b).Evaluating both investment and financing decisions on the same criterion Explanation:Capital budgeting involves evaluating both investment and financing decisions on the same criterion, although they differ in purpose, process, and perspective. It is not limited to short-term projects or financial instruments.

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Q. What does capital budgeting involve?
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