Capital Budgeting Is the Method We Use to Justify the Acquisition

question 81

True/False

Capital budgeting is the method we use to justify the acquisition of those items that have a useful life in excess of one year.

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Definitions:

Derived Demand

A demand for a commodity or service that arises from the demand for another commodity or service, for example, the demand for steel being derived from the demand for cars.

Containers

Objects or spaces that are designed to hold, store, or transport goods and materials.

Competitive Bids

Offers submitted by several suppliers or contractors to complete a specific job or supply goods at competitive prices.

Organizational Buying

The process by which businesses or institutions purchase products or services for use in production, operations, or resale.