Capital Budgeting Involves

question 4

Multiple Choice

Capital budgeting involves:

• A) how a company's day-to-day financial matters should be managed.
• B) how the company should finance its assets.
• C) which productive assets the company should employ.
• D) all of the above.

---

Definitions:

Direct Labor-Hours

A measure of the labor directly involved in manufacturing a product, represented in hours.

Predetermined Overhead Rate

A rate calculated before a period begins, based on estimated overhead costs and activity levels, used to allocate overhead to products.

Actual Manufacturing Overhead

The real costs incurred in the manufacturing process that are not directly tied to production, including utilities, maintenance, and factory rent.

Raw Materials

Basic substances in their natural, modified, or semi-processed state used as inputs to a manufacturing process for conversion into finished goods.