What types of projects require the least detailed analysis

Business & Finance
Tutor: None Selected Time limit: 1 Day

What types of projects require the least detailed and the most detailed analysis in the capital budgeting process and why?    150 words

May 3rd, 2014

The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. The firm’s investment decisions would generally include expansion, acquisition, modernization and replacement of the long-term assets. Sale of a division or business (divestment) is also as an investment decision.

The capital budgeting has following characteristics:

The exchange of current funds for future benefits.

The funds are invested in long-term assets.

The future benefits will occur to the firm over a series of years.


Hence the projects which are of long term nature and above characterstics require detailed analysis in the capital budgeting processes.



Reference:

1.Management accounting by Khan & Jain


May 3rd, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 3rd, 2014
...
May 3rd, 2014
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer