vijay
asked over 1 year ago
Can you explain Capital budgeting techniques are least likely to be used in evaluating ?
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Sumana G Rao
answered over 1 year ago
Capital budgeting is the process of planning expenditures for investments hat are expected to generate returns over a period of more than one year. Thus, capital budgeting concerns the acquisition or disposal of long-term assets and the financing ramifications of such decisions. The adoption of a new method of allocating nontracble costs to product lines has no effect on a company’s cash flows, does not relate to the acquisition of longterm assets , and is not concerned with financing. Hence, capital budgeting is irrelevant to such a decision.
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