Which type of budgeting would investing in fixed assets be classified as?
A) operating budgeting
B) capital budgeting
C) master budgeting
D) working capital budgeting

Question

Quizplus · Accepted Answer

Investing in fixed assets falls under the category of capital budgeting, which involves making long-term investment decisions in fixed assets such as property, plant, and equipment (PP&E). Operating budgeting pertains to short-term budgeting decisions related to day-to-day operations, while master budgeting involves creating a comprehensive budget for the entire organization, and working capital budgeting pertains to budgeting for short-term cash flow and liquidity needs.

Which Type of Budgeting Would Investing in Fixed Assets Be