chandreashna143 chandreashna143

23-05-2021
Business

contestada

Which of the following statement is not true for capital budgeting?
O a. Capital budgeting decisions are reversible in nature,
O b. Business expansion decision is a capital expenditure dedision,
O a Capital budgeting decisions affect the future stability of the firm
O d. Sunk cost is an irrelevant cost in capital budgeting

Respuesta :

reamie122 reamie122

23-05-2021

Answer:

a.

or Opportunity costs are excluded

Explanation:

Capital budgeting decisions involve huge funds and are long term decisions. As they involve huge costs one wrong decision would have a big effect on the business. They include all the potential expenses/costs. It includes opport

unity cost, actual cost, incremental and relevant cash flows. It does not include sunk costs.

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ayokenny2001 ayokenny2001

17-05-2022

The wrong statement is sunk cost is an irrelevant cost in capital budgeting.

What is capital budgeting?

Capital budget is a budget meant for the continuous maintenance of the asset of an organization.

The assets involve in capital budgeting are :

Land
Building
Equipment

Hence, the wrong statement is sunk cost is an irrelevant cost in capital budgeting.

Learn more about capital budgeting here: https://brainly.com/question/17439061

#SPJ2

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