The first step in the capital budgeting evaluation process is to
A) request proposals for projects.
B) screen proposals by a capital budgeting committee.
C) determine which projects are worthy of funding.
D) approve the capital budget.

Question

Quizplus · Accepted Answer

The first step in the capital budgeting evaluation process is to request proposals for projects. This involves collecting ideas from managers and employees, and evaluating them based on their potential for generating future cash flows and contributing to the company's goals. It is only after this step that the proposals can be screened, evaluated, and approved for funding. Therefore, option A is the best choice.

The First Step in the Capital Budgeting Evaluation Process Is