[amp_mcq option1=”Expansion Programme” option2=”Merger” option3=”Replacement of an Asset” option4=”Inventory Level” correct=”option4″]<\/p>\n
The correct answer is D. Inventory level.<\/p>\n
Capital budgeting is the process of planning and managing a company’s long-term investments. These investments can include things like new equipment, buildings, and research and development. The goal of capital budgeting is to make sure that the company is investing in the right projects that will generate the most return on investment.<\/p>\n
Inventory level is not a capital budgeting decision because it is a short-term decision. Inventory is the stock of goods that a company has on hand to sell. The level of inventory that a company needs to keep on hand depends on a number of factors, such as the demand for its products, the lead time for ordering new products, and the cost of carrying inventory.<\/p>\n
Expansion program, merger, and replacement of an asset are all capital budgeting decisions. An expansion program is a decision to increase the size of a company’s operations. A merger is a decision to combine two companies into one. A replacement of an asset is a decision to buy a new asset to replace an old one.<\/p>\n
All of these decisions have a long-term impact on a company’s financial performance. They should be made carefully, after considering all of the potential risks and rewards.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Expansion Programme” option2=”Merger” option3=”Replacement of an Asset” option4=”Inventory Level” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-50010","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n