Capital budgeting and expenditures, Management Theories

Capital Budgeting:

Capital budgeting is the strategy for the purchase and management of long-term assets in organizations.  A capital budget is usually equipped each year, and contains a complete list of the firm's planned investment projects. Major corporations often prepare longer-term capital budgets, which detail the firm's expenditure plans various years into the future.

Capital Expenditures:

It is an expenditure of company funds to acquire long-term assets. The investments are typically designed to built or introduce new products or services, to expand existing production or service capacity, or to alter the mix of present's production or service.



Posted Date: 10/15/2012 8:07:27 AM | Location : United States

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