What is optimal capital budget?

Q: How can budgeting be used for strategic allocation of resources?

A: In budgeting, standards are set for the next period so that actual performance could be directed…

Q: __________________is the cornerstone of the master budget?

A: The  Answer

Q: What are the advantages and disadvantages of the participatory approach to budgeting?

A: Participative budgeting is a budgeting process in which the people who are in the lower levels of…

Q: What information do we need for capital budget analysis?

A: A corporation's systematic method for analyzing possible large-scale expenditures or investments is…

Q: What are the benefits of Kaizen budgeting?

A:

Q: The master budget will comprise of what?

A: A MASTER BUDGET IS A SERIES OF SMALLER BUDGETS THAT ARE ROLLED UP INTO ONE LARGER BUDGET TO PROVIDE…

Q: What is the function of a cash budget? A capital budget?

A: A cash budget is a financial plan or plan of projected money receipts and payment during the period.…

Q: What is linear programming for capital budgeting?

A: A linear programming model is characterized which is intended to decide the most practical financing…

Q: What is a flexible budget? Explain? Give example?

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: Why is the capital budgeting decision important?

A: Capital Budgeting relates to decision of entity relating to either purchase of capital assets or…

Q: How is capital budgeting similar to security valuation? How is it different?

A: Capital budgeting is the process of evaluating various projects' net present value to arrive at a…

Q: t are the different kinds of capital budgeti

A: Capital budgeting: Capital budgeting refers to the process of deciding between the various…

Q: Why does the economic-enterprise budget include depreciation or capital recovery and fixed costs?

A: A budget is the estimation of costs, expenses and incomes. Fixed costs are those costs which lasts…

Q: What are the benefits of making an operating budget?

A: Operating Budget: The operating budget is that budget which is prepared to plan all the operating…

Q: What are the benefits of a master budget?

A: Master Budget:The master budget is the core budget that describes the full process of budget. This…

Q: What is life-cycle budgeting?

A: Budgeting:Budgeting refers to preparation of financial statements that show all the incomes and…

Q: What are the characteristics and importance of the budget?

A: In the context of the given question, we are required to explain the characteristics and importance…

Q: uses and advantages of budget?

A: The budget represents the estimation of the expenses to be incurred and revenue to be earned by the…

Q: What is capital budgeting?

A: The Capital Budgeting, in simple terms, is the process of evaluating which project to choose in…

Q: What is a static budget? Explain? Give example?

A:

Q: what is capital budget analysis?

A: Every business needs funds to manage it's business and utilisation of funds should be done in…

Q: What is a static planning budget?

A: Budget:   It is a statement of revenues and expenditures to be incurred by the company for a…

Q: What are the benefits of budgeting?

A: Budget means future forecast of the business. Budgeting is a process of making budgets. For example,…

Q: How does activity-based budgeting explain the logic of budgeting?

A: Activity based budgeting: It is a budgeting system where budgets are prepared based on the expected…

Q: What are the components of budgeting model and why is it important?

A: Budgeting The purpose of preparing the budget to evaluate the performance of the business for a…

Q: What are the advantages of the PI method of capital budgeting?

A: The ratio that evaluates the profitability of the investment is term as the profitability index…

Q: What is the single best capital budgeting decision criterion? Explain.

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What are the major advantages of self-imposed budgets? Whatcaution must be exercised in their use?

A: Self-imposed budgets: It refers to the budgets in which personnel have responsibility over the…

Q: Why is the NPV the primary capital budgeting decision criterion?

A: NPV( net present value) is a method to determine the current value of all the cash flows which are…

Q: What are real options, and why are they important to capital budgeting?

A: A real option is a valuable right to make or else abandon some choice that is available to the…

Q: what are the pro and cons for traditional budgeting?

A: Traditional Budgeting Traditional budgeting which provides the budgetary requirement of the business…

Q: what is the budget development process?

A: A budget is an instrument for planning, executing, and managing operations in order to make the most…

Q: What is captial budgeting? Why a separate capital budget is needed?

A: The term capital budgeting comprises of two words, "Capital" means the funds needs for the…

Q: what are the pros and cons for activity based budgeting ?

A: Activity based budgeting is a method in which activity are thoroughly analyzed to predict costs.it…

Q: What is the benefit of continuous budgeting?

A: Budget: It is an estimated financial plan for future time period. It is used by management as an…

Q: what is meant by a “limiting budget factor”

A: Solution: Limiting budget factor is a constraint that prevents expanding the budget when prepared.

Q: What is a selling expense budget? What is a capital expenditures budget?

A: A Budget is a Financial Plan made for Future period of time. There are many types of Budgets such as…

Q: What are the three types of risk that are relevant in capital budgeting?

A: Capital budgeting (or investment appraisal) is the planning process used to determine whether an…

Q: What is a flexible budget performance report?

A:

Q: Define capital budget

A: Capital Budget consists of capital receipts and payments. It also incorporates transactions in the…

Q: Opportunity Cost In the context of capital budgeting, what is an 9.1 opportunity cost?

A: Capital budgeting is the process a company takes to evaluate potential major projects or…

Q: What is a cash budget?

A: Cash & Cash Equivalents Cash and cash equivalents refers to the liquid investments that are…

Q: Define the term cash budget and give an example.

A: Budgets are used by governments, organizations, and individuals to estimate revenue and expenses for…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.