definition of bedgeting

Capital Budgeting is the planning process used to decide either an organization’s long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects. Capital Budgeting is the process of allocates resources for major capital, or investment expenditures. One of the primary goals of capital budgeting investments is to increase the value of the firm to the shareholders.

Profit Planning or Budgeting

Learning Objectives: Define and explain the terms “profit planning” and “budgeting”. What is the difference between planning and control? What are the advantages and disadvantages of budgeting? Contents: Definition and Explanation of Profit Planning and Budgeting Difference Between Planning and Control Advantages and Disadvantages