Cost And Management Accountıng Deneme Sınavı Sorusu #1399092
"Capital budgeting.........................." Which of the following best completes the statement above?
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is a quantitative expression of the managements’ plans for a specific period of |
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should be backed by realities and depend on reasonable expectations and be applicable. |
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is the process of evaluating the feasibility of a project, using some indicators such as rate of return and the time needed to pay back |
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represents the detailed plan of how the company will acquire and use financial and other resources during the following budget period |
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reflect the expected results of their planned actions and control the balance between their revenues and expenses |
The strategy provides the general framework for long-term plans, which are the action plans for 5 to 10 years. This kind of plan is based on capital budgeting techniques. Management synchronizes the company’s capabilities with the long-term objectives by using the capital budgets. The capacity of the company for the following period is determined by using capital budgets. Capital budgeting is the process of evaluating. the feasibility of a project, using some indicators such as rate of return, the time
needed to pay back, etc.
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