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Capital Budgeting
The process of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year, such as new machinery or building expansions.
Incremental Sales
Additional sales generated by a new business activity, such as a marketing campaign or product launch, beyond what would have been sold without it.
Operating Expenses
Costs associated with running a business that are not directly linked to the production of goods or services, including rent, utilities, and administrative salaries.
Capital Budgeting
Involves analyzing potential investments and expenditures to determine their economic viability and how they align with the company’s strategic goals.
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