Which of the Following Assets Is Considered in Capital Budgeting

question 56

Multiple Choice

Which of the following assets is considered in capital budgeting?

• A) purchase of stocks
• B) purchase of inventory
• C) purchase of trucks
• D) purchase of bonds

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Definitions:

Batch Setup

Batch setup refers to the process and time required to prepare equipment and systems for manufacturing a specific batch of products, including assembly and configuration activities.

Expected Activity

The projected level of operation or production, often used in budgeting and planning processes.

Clerical Activity

Routine office tasks and procedures such as filing, typing, and scheduling, which support the administrative functions of an organization.

Purchase Orders

Written authorization for a supplier to deliver a specified quantity of goods at a stated price.