Question

What is the primary objective of capital budgeting?

a.

Short-term profitability

b.

Stability and growth of the organization

c.

Current asset management

d.

Financing fixed assets

Posted under IC 89 Management Accounting

Answer: (b).Stability and growth of the organization Explanation:The primary objective of capital budgeting is to determine the success, stability, growth, and profitability of the organization.

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Q. What is the primary objective of capital budgeting?
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