Capital Budget is used for what?

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Multiple Choice

Capital Budget is used for what?

Explanation:
Capital budgeting focuses on planning for major, long-lasting assets. It is used to authorize and fund long-term improvements, facilities, and equipment because these items provide benefits over many years and require a substantial upfront investment and careful justification. Routine office supplies and payroll are ongoing operating costs, paid from the operating budget, while interest payments relate to debt financing and are not capital expenditures.

Capital budgeting focuses on planning for major, long-lasting assets. It is used to authorize and fund long-term improvements, facilities, and equipment because these items provide benefits over many years and require a substantial upfront investment and careful justification. Routine office supplies and payroll are ongoing operating costs, paid from the operating budget, while interest payments relate to debt financing and are not capital expenditures.

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