Question

Capital Budgeting is a part of ___________.

• A. Investment Decision
• B. Working Capital Management
• C. Marketing Management
• D. Costing Decision

Answer 1

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.