Asked by Kenneth Blake on Jul 12, 2024
Verified
The process of analyzing alternative long-term investments and deciding which assets to acquire or sell is known as:
A) Planning and control.
B) Capital budgeting.
C) Variance analysis.
D) Master budgeting.
E) Managerial accounting.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
- Gain an understanding of the essential concepts and value of capital budgeting.
Verified Answer
SM
Serge MissirianJul 13, 2024
Final Answer :
B
Explanation :
Capital budgeting involves analyzing potential long-term investments and determining which assets to acquire or sell. Planning and control, variance analysis, master budgeting, and managerial accounting are all related to financial management, but do not specifically pertain to the process of analyzing and deciding on long-term investments.
Learning Objectives
- Gain an understanding of the essential concepts and value of capital budgeting.
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