Question

_____ budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated not as regular expenses but as investments.

A. Master

B. Cash

C. Capital

D. Production

E. Sales

Answer 1

The correct answer is C. Capital. A capital budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated not as regular expenses but as investments.

Step-by-step explanation:

The correct answer is C. Capital.

A capital budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated not as regular expenses but as investments. These assets are expected to provide long-term benefits to the company and are not consumed during the production process.

For example, if a manufacturing company decides to invest in a new machine that will improve production efficiency, the cost of purchasing that machine would be considered a capital expenditure and would be included in the capital budget.