Capital Budgeting and Project Planning:
In the introduction portion of capital budgeting, we can elucidate it as that decisions that are taken for buying long term and fixed assets. Working capital judgments and current assets investment decision do not come below capital budgeting. Whenever we take the decision whether specific fixed asset must be purchased or not, its planning will be capital budgeting. In capital budgeting, we fix our net investment in best project that will give us higher return. For capital budgeting, we use different methods for evaluating various projects. All methods are termed as capital budgeting methods.
Capital budgeting employs in all the area such as defense, construction business, and other big scale business because devoid of capital budgeting, our investment will not provide better return and we might get risk of loss of return.
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While examining the financial statements of a business, a number of checks might be performed on the financial statements to assist gain a feel for their reliability.
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Financial Accounting intended at finding out results of accounting year in the form of Profit and Loss Account and Balance Sheet. Cost Accounting intended at computing cost of production or service in a scientific manner and then cost control and cost reduction.
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