Question

Which type of budget identifies costs for major equipment, new facilities, and other significant investments?

1) Operating budget
2) Zero-based budget
3) Start-up budget
4) Project budget
5) Capital budget

Answer 1

A capital budget identifies costs for major equipment, new facilities, and other significant investments.

Step-by-step explanation:

The type of budget that identifies costs for major equipment, new facilities, and other significant investments is the Capital budget. A capital budget is a financial plan that outlines the expenditure on long-term assets and investments. It focuses on acquiring resources that will have a lasting impact on the organization, such as purchasing heavy machinery, constructing new buildings, or investing in research and development.