Final answer:
Threadless would create a capital budget to estimate the costs for purchasing long-term assets such as 3D printers for making custom phone cases. This type of budget helps the company plan for significant financial investments and manage its long-term financial health effectively.
Step-by-step explanation:
If Threadless, a company, needs to estimate costs for the purchase of a long-term asset such as 20 3D printers for making custom phone cases, the type of budget it would create is a d. Capital budget. A capital budget is focused specifically on the investment in long-term assets and their associated costs. It is separate from other types of budgets because it deals with larger, often more expensive, assets that have a significant impact on the company's financial future. Creating and adhering to a capital budget ensures that the company carefully considers the long-term operational and financial implications of acquiring these assets. Since budgeting involves difficult choices and trade-offs that impact a company's cash flows and financial health, it is crucial to thoughtfully plan major expenditures. A good budget can help with tracking finances effectively and eliminating unnecessary expenses to achieve the organization's ultimate financial goals.