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Which of the following is not part of the capital budgeting process?

O A. identify and analyze potential capital investments
O B. perform post-audits
O C. apply capital rationing
O D. develop short-term operating strategies​

User Lestat
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1 Answer

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Answer: D. develop short-term operating strategies​

Step-by-step explanation:

Capital budgeting simply refers to the process that is used by a business in order to determine the fixed asset purchases that is proposed which it should accept, or not. It's typically done in order to select the investment that's most profitable for a company.

Some of the capital budgeting processes include:

• Identification and analysis of potential capital investments.

• Application of capital rationing

• Performing post-audits

It should be noted that developing short-term operating strategies​ is not part of the capital budgeting process. Therefore, the correct option is D.

User Jemmy
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