Here is the synopsis of our sample research paper on The Importance of Capital Budgeting. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 5 page paper explains what is meant by capital budgeting and why it is so important to a company. Using both real and fictitious examples the writer demonstrates how capital budgeting should be important and add value to any company. The bibliography cites 3 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEcapbud.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
on an everyday basis is understood. To start with we can define the terms we are using and then apply them, to capital budgeting. There are many different interpretations of
these terms, but to find an all encompassing term it may be best to use a definition from a management accounting organisation. The Institute of Cost Management Accountants describe
a budget thus; "A financial and or/quantitative statement prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining
a given objective. It may include income, expenditure and the employment of capital" (Chadwick, 1998). Whilst this may usually refer to an on going project it may equally be important
when considering capital expenditure. Therefore, we can see it is a predetermined plan that is used to determine the way a business uses
its resources. This will also need to be controlled. Budgetary control is described by the same organisation as; "The establishment of budgets relating the responsibilities of the executives to the
requirements of the policy, and by continuous comparison of actual with budgeted results either to secure by individual action the objective of that policy or to provide a basis
for its revision " (Chadwick, 1998). Therefore, the budget also needs to be related to the final objective, and undergo revisions. If we consider an example of a project that
did not have any budgetary controls we may see how a project can fail. A company may have a great demand for its goods and need to increase capacity.
A plan to build an extension is put forward, costed out at 500,000 and the plan is accepted as this is seen as affordable without the company needing to increase
...