Define capital budgeting Accoutering to Charles T. Hrongreen. 2- Name and describe METHODS OF CAPITAL BUDGETING OF EVALUATION. 3-Define Working Capital According to the definition of Weston and Brigham
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
2- Name and describe METHODS OF CAPITAL BUDGETING OF EVALUATION.
3-Define Working Capital According to the definition of Weston and Brigham
According to Charles T. Horngren: “Capital Budgeting is long-term planning for making and financing proposed capital outlays.”
Capital Budgeting is a decision making process in which company requires to evaluate long-term profitability of a particular project. Its process which takes into consideration some of the financial factors which determines the long term impacts on the company because of accepting or rejecting a particular project. It studies the potential of a particular investment project.
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