Capital budgeting and its importance

Capital budgeting

Capital budgeting means making investment decisions in capital expenditure. Capital expenditure means making expenditure at present but the benefit of which is going to be received over a period of time. For example when we buy the fixed assets like land and building, we spent the expenditure once but its benefit is going to be received in the coming future. Capital budgeting is also known as investment decision making, capital expenditure decision, planning and analysis of capital expenditure and long term investment decision. Continue reading “Capital budgeting and its importance”