alleryStart learning →What is the core purpose of capital budgeting?
AForecasting monthly product sales
BReconciling bank statements
CAllocating funds to major projects
DManaging day to day wage cash
Answer & Solution
Correct answer: C. Allocating funds to major projects
Capital budgeting is the planning process for allocating resources to major capital or investment expenditures such as plants and machinery.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.
Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?