Ask Question
11 November, 12:22

Which of the following would not involve a capital-budgeting analysis?

A. The acquisition of new equipment.

B. The adoption of a new cost driver for overhead application.

C. The construction of a new distribution facility.

D. All of the above would involve a capital-budgeting analysis.

E. None of the above would involve a capital-budgeting analysis.

+3
Answers (1)
  1. 11 November, 12:30
    0
    The correct answer is B. The adoption of a new cost driver for overhead application.

    Explanation:

    This option is chosen because it is not directly related to organizational capital, or the production of goods or the provision of services. Otherwise it happens with options A and C, which does merit an analysis of the capital budget.

    Option B is only taken into account in the analysis of the sales budget or production costs.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following would not involve a capital-budgeting analysis? A. The acquisition of new equipment. B. The adoption of a new cost ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers