--%>

Define Capital Budgets

Capital Budgets: The procedure of finding out which potential long-term projects are value undertaking, by comparing their estimated discounted cash flows with their internal rates of return.

Capital Budget is the predicted amount planned to be expended for capital items in a specified fiscal period. The capital items are fixed assets like facilities and tools, the cost of which is generally written off over a number of fiscal periods. The capital budget, though, is restricted to the expenditures which will be made in the fiscal year comparable to the associated operating budgets.

   Related Questions in Managerial Accounting

  • Q : Define Inter-Entity Inter-Entity : A

    Inter-Entity: A term meaning between or among distinct federal reporting entities. It generally refers to the activities or costs among two or more agencies, bureaus or departments.

  • Q : Cash merger Business combination in

    Business combination in which the acquiring corporation buys all the assets of the target, recording them at fair market values. The target is absorbed into the acquiring corpora- tion, and has gains on the sales of the assets that appear on its last tax return. In ad

  • Q : Determining costs and benefits in

    Write down a short note on determining costs and benefits in decision making process?

  • Q : Bank reconciliation statement Explain

    Explain the term bank reconciliation statement?

  • Q : Define the term Strategic management

    Briefly define the term Strategic management and also state the reason why it is designed?

  • Q : What is Corporate Tax Corporate Tax :

    Corporate Tax: It is a levy placed on the gain of a firm, with different rates employed for various levels of gains. Corporate taxes are the taxes against profits earned by businesses throughout a given taxable period; they are usually applied to comp

  • Q : Describe fluctuating capital of partners

    Describe fluctuating capital of partners? Answer: Partner‘s capital is stated to be fluctuating if capital modifies with every transaction in the capital accou

  • Q : Define Management Accounting Give a

    Give a brief introduction of the term ‘Management Accounting’. And also write down its objectives?

  • Q : How do tax influence the cost of debt

    Normal 0 false false

  • Q : What is Partnership Partnership :

    Partnership: Whenever two or more persons enter into an agreement to take on business and share its gain and losses, it is a condition of partnership. It can also define as: "Partnership is the relation among persons and who have granted to share the