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Question

Capital Budgeting is a part of ___________.

A
Investment Decision
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B
Working Capital Management
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C
Marketing Management
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D
Costing Decision
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Solution

The correct option is A Investment Decision
Capital Budgeting is the planning process used to determine whether organisation's long term investment proposal are worth funding through firm's capitalization structure i.e, debt, equity & retained earnings.
The capital budgeting process is a measurable way for businesses to determine the long-term economic and financial profitability of any investment project. A capital budgeting decision is both a financial commitment and an investment.

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