• Email : support@worldedu.us

  • Phone : 1-909-4568906

  • Login / Register
The cart is empty

 

WE ARE COLLEGE BOARD ONLINE PROVIDER!


Our featured projects

Finance and Accounting

Created: Tuesday, 29 August 2017 05:59
Rate this article (0 Vote)
Category: Education
Hits: 110
Last Updated: Tuesday, 29 August 2017 06:05

Capital Budgeting Process

Capital budgeting is the process that companies use for decision making on capital project. The capital project lasts for longer time,usually more than one year. As the project is usually large and has important impact on the long term success of the business, it is crucial for the business to make the right decision.

finance budget

The specific capital budgeting procedures that the manager uses depend on the manger's level in the organization and the complexities of the organization and the size of the projects. The typical steps in the capital budgeting process are as follows:

Brainstorming. Investment ideas can come from anywhere, from the top or the bottom of the organization, from any department or functional area, or from outside the company. Generating good investment ideas to consider is the most important step in the process.

Project analysis. This step involves gathering the information to forecast cash flows for each project and then evaluating the project's profitability.

Capital budget planning. The company must organize the profitable proposals into a coordinated whole that fits within the company's overall strategies, and it also must consider the projects' timing. Some projects that look good when considered in isolation may be undesirable strategically. Because of financial and real resource issues, the scheduling and prioritizing of projects is important.

Performance monitoring. In a post-audit, actual results are compared to planned or predicted results, and any differences must be explained. For example, how do the revenues, expenses, and cash flows realized from an investment compare to the predictions? Post-auditing capital projects is important for several reasons. First, it helps monitor the forecasts and analysis that underlie the capital budgeting process. Systematic errors, such as overly optimistic forecasts, become apparent. Second, it helps improve business operations. If sales or costs are out of line, it will focus attention on bringing performance closer to expectations if at all possible. Finally, monitoring and post-auditing recent capital investments will produce concrete ideas for future investments. Managers can decide to invest more heavily in profitable areas and scale down or cancel investments in areas that are disappointing.

Complexity Of Capital Budgeting Process

The budgeting process needs the involvement of different departments in the business. Planning for capital investments can be very complex, often involving many persons inside and outside of the company. Information about marketing, science, engineering, regulation, taxation, finance, production, and behavioral issues must be systematically gathered and evaluated.

The authority to make capital decisions depends on the size and complexity of the project. Lower-level managers may have discretion to make decisions that involve less than a given amount of money, or that do not exceed a given capital budget. Larger and more complex decisions are reserved for top management, and some are so significant that the company's board of directors ultimately has the decision-making authority. Like everything else, capital budgeting is a cost-benefit exercise. At the margin, the benefits from the improved decision making should exceed the costs of the capital budgeting efforts.

About The Author

FREE COURSES


Register as a member to take our free courses!

As our lifestyle improves, our health also improves, and we experience less disease and sickness. When most people are asked what it means to be healthy, they normally respond with the four components of fitness mentioned earlier (cardiorespiratory ability, muscular ability, flexibility, and body composition). Although these components are a critical part of being healthy, they are not the only contributing factors. Physical health is only one aspect of our overall health.

It's a colorful activity in China. This activity is about the personal experiential travel of wellness, Chinese healthy dietary culture, Taiji Quan learning, Chinese acupuncture and cupping. If you take part in the activity, you will learn a lot of interesting Chinese culture, and the activity can bring you healthy life.

It is difficult to think of an area of modern life that has not been touched by ceramics. Our homes are made from brick walls, held together by cement made from calcium silicates, and glass windows, also made from silica. Inside, the walls are plastered with ceramic gypsum, porcelain bathrooms are decorated with tiles made of clay and talc, and kitchens stacked with pottery and glass have decorative ceramic floor tiles. Clay pipes link our homes to the sewage system and ceramic insulators are essential in connecting them to the electricity grid. Back inside the house, that electricity flows through television sets that contain more ceramic insulators, components such as capacitors and resistors made from ceramics, computers based on silicon chips, magnetic ceramics used in the electric motors of appliances such as vacuum cleaners and food blenders, and piezoelectric ceramics used in tiny headphones and loudspeakers. Telephone calls and cable television signals may be piped to the home through glass fibers, while other kinds of glass fibers keep heat inside the walls and the roof. That heat may itself be provided by a heated ceramic filament, just as lighting comes from glass bulbs or fluorescent tubes.

Do you want to take a program with us? Come to Jingdezhen, China and experience the fun of making ceramics. Pursue your creative side with group programs and activities for all ages. Improve your skills or break out of your comfort zone and try new things. You can not only get beautiful ceramics, but also get an excellent opportunity for self-improvement. So hurry up it! We are wating for you!

Sichuan is well known for its spicy cuisine and use of Sichuan peppers due to its more arid climate. The Sichuanese are proud of their cuisine, known as one of the Four Great Traditions of Chinese cuisine. The cuisine here is of "one dish, one shape, hundreds of dishes, hundreds of tastes", as the saying goes, to describe its acclaimed diversity. The most prominent traits of Sichuanese cuisine are described by four words: spicy, hot, fresh and fragrant.

Do you want to join us? Come to Sichuan, China and experience the fun of gourmet. Pursue your creative side with group programs and activities for all ages. Improve your skills or break out of your comfort zone and try new things. You can not only eat delicious food, but also get an excellent opportunity for cooking. So hurry up it! We are wating for you!

You will know six Chinese schools after this course, including their history, characteristics and some other information. We will help you learn Chinese and pass the HSK test. You can check our special activities at the last chapter.