Question

The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called: Group of answer choices

a. absorption cost analysis
b. variable cost analysis
c. capital investment analysis
d. cost-volume-profit analysis

Answer 1

C) Capital investment analysis

Step-by-step explanation:

Investment in fixed assets is capital investment, and fixed assets are capital assets that are purchased for long-term use (usually longer than 1 year), for example: land, buildings, or equipment.

Therefore, the financial analysis of investments in capital assets is called capital investment analysis.