Asked by Jadyn Quinn on Jul 12, 2024
Verified
The budget that summarizes future plans for the acquisition of fixed assets is the _____ budget.
A) direct materials purchases
B) production
C) sales
D) capital expenditures
Capital Expenditures
Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its operations.
Direct Materials Purchases
Expenditures for raw materials that are directly traceable to the manufacturing of a product and are a significant part of the production process.
Fixed Assets
Long-term tangible assets held for business use and not expected to be converted to cash in the short term.
- Understand the purpose and components of capital expenditure budgets.
Verified Answer
Learning Objectives
- Understand the purpose and components of capital expenditure budgets.
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