COST ACCOUNTING
CAPITAL BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Machine Purchase
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Land Purchase
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Purchase of production raw materials
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answers a and b are correct
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a, b and c are all correct
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Detailed explanation-1: -What Is Capital Investment? Capital investment is the acquisition of physical assets by a company for use in furthering its long-term business goals and objectives. Real estate, manufacturing plants, and machinery are among the assets that are purchased as capital investments.
Detailed explanation-2: -The most common examples of capital projects are infrastructure projects such as railways, roads, and dams. In addition, these projects include assets such as subways, pipelines, refineries, power plants, land, and buildings. Capital projects are also common in corporations.
Detailed explanation-3: -The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.
Detailed explanation-4: -Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business.