capital budgeting


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capital budgeting

[′kap·ət·əl ′bəj·əd·iŋ]
(industrial engineering)
Planning the most effective use of resources to obtain the highest possible level of sustained profits.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
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The Building Congress called on City government to overhaul its antiquated capital budgeting process to better define long-term priorities and comprehensively guide ongoing capital investment decisions.
While de Jong's focus on the state of the operating budget is politically understandable, the province bases its financial reporting on a capital budgeting approach.
A survey of CFOs published in the Journal of Applied Corporate Finance found that the majority of companies interviewed applied sophisticated financial analysis techniques, specifically internal rate of return (IRR) and net present value (NPV) calculations in their capital budgeting processes.
Making decision is one of the most important tasks of the managers in a business unit, and one of the most important financial decisions is capital budgeting decisions which lack of attention to that can involve financial resources of company in high risk and uncertain projects.
More and more are grappling with comparisons of M&A versus capital budgeting, both to grow the company, and then looking at how that compares with the right side of the balance sheet.
This text for professionals and advanced students in criminal justice and law enforcement describes the various capital budgeting functions and their use in law enforcement and criminal justice, emphasizing the use of capital budgeting to inform long-term strategic decision making.
To this end, capital budgeting is extremely important because it is the main mechanism for planning large investments which define the future business and financial standing of the company.
State and local governments have long used capital budgeting to separate operating and capital costs.
The chapter on 'basics of capital budgeting' has been restructured into two chapters, viz., 'techniques of capital budgeting' and 'project cash flows', where 'technique of capital budgeting' describes discounting and non-discounting techniques of capital budgeting, 'project cash flows' discusses determination of project cash flows from financial statements.