The Process of Identifying,evaluating,and Selecting Projects That Require Substantial Amounts

question 30

Multiple Choice

The process of identifying,evaluating,and selecting projects that require substantial amounts of resources and are expected to generate benefits for many years into the future is called:

• A)strategy formulation.
• B)strategic planning.
• C)capital budgeting.
• D)operational budgeting.

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Expenses

Costs incurred by a business in the process of earning revenue, including operational costs, wages, and utilities, reflected on the income statement.

Straight-Line Depreciation

A system for allocating the expenditure of a material asset across its life expectancy in identical yearly figures.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life to date.