Drawbacks of capital budgeting
Write down the drawbacks of capital budgeting?
Expert
Capital budgeting drawbacks are illustrated below :- i) It has long term executions which cannot be employed in short term and it is employed as operations of the business. An incorrect decision in the early stages can influence the long-term stability of the company. The operating cost gets raised when the investment of fixed assets is more than necessary.
ii) Inadequate investment makes it hard for the company to raise it budget and the capital. iii) Capital budgeting engages huge number of funds so the decision has to be taken cautiously. iv) Decisions in capital budgeting are not adjustable as it is difficult to locate the market for capital goods.
Describe briefly Distinction between the term Component cost and Composite cost?
After agonizing regarding whether to buy a hot dog or a hamburger along with his last dollar while he goes to the fair, Jeeter at last chooses the hot dog. The hamburger shows Jeeter's: (i) normative choice, because it would be more nutritious. (ii) opportunity cost o
Briefly state the pros and cons of Proprietorship?
Explain Unemployment, Growth, and the Future?
Instruction: McDonald's vs. Burger King - these two fast food chains use different waiting line design: Independent queue vs. pooled queue. To compare the two different queue systems on equal footing, let's assume that we pick a McDonald's sto
“Prices are the automatic regulator that tends to keep production and consumption in line with each other.” Explain.
Illustrate a summary of what can cause a decrease in demand?
Question: 1. Nancy is taking a course in Fairy Tales from Professor Grimm and another in Philosophy from Professor Par. In each course there will be two exams, a midterm exam and a final exam. In Professor Grimm's
What divergences arise between equilibrium and an efficient output when spillover costs? How might government correct this divergence?
Who owns the factors of production and the method used to coordinate economic activity?
18,76,764
1926392 Asked
3,689
Active Tutors
1430345
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!