Definition and Explanation of Capital Budgeting: Learning Objective of this article: Define and explain the term “capital budgeting”. What is meant by the term “investment in capital budgeting decisions”? Explain with examples. The term “capital budgeting” is used to describe how managers plan significant
Explanation of Capital Budgeting
The term “capital budgeting” is used to describe how managers plan significant outlays on projects that have long-term implications such as the purchase of new equipment and the introduction of new products.