Question

What is the basis of Capital Budgeting?

a.

Market analysis and demand estimation

b.

Feasibility studies, analysis, and various considerations

c.

Technical details and operating costs

d.

Cost-benefit analysis of isolated projects

Posted under IC 89 Management Accounting

Answer: (b).Feasibility studies, analysis, and various considerations Explanation:The basis of Capital Budgeting involves feasibility studies, analysis, and various considerations before making any capital investment.

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Q. What is the basis of Capital Budgeting?
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