Meaning of capital budgetingdecisions relating to, Ask an Expert

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Meaning of Capital Budgeting

Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current accounting year are known as capital expenditure / capital budgeting decisions. They generally are decisions related to fixed / long term assets whose investment decisions involve current outlay of money but returns are spaced over a period of time longer than one year. These profits may be either in the form of increased revenues or reduced costs.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9511698

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