The process that managers use when they evaluate multi-year investments is called
A) Capital budgeting
B) Activity-based budgeting
C) Short-term decision making
D) Breakeven analysis

Question

Quizplus · Accepted Answer

Capital budgeting is the process of evaluating and selecting long-term investments that are expected to generate returns over a period of multiple years. It involves analyzing the expected cash inflows and outflows associated with different investment options and selecting the most profitable one. Activity-based budgeting is a different process that focuses on the costs and resources required to carry out specific activities within an organization. Short-term decision making and breakeven analysis are also different concepts that do not directly relate to evaluating multi-year investments.

The Process That Managers Use When They Evaluate Multi-Year Investments