Which of the following would not be judged a traditional category of a capital budgeting project?
A)Machine replacement proposals
B)Salary negotiations
C)New product proposals
D)Plant expansion proposals

Question

Quizplus · Accepted Answer

Capital budgeting projects involve evaluating and making decisions about long-term investments in assets that are expected to generate returns over a period of time. Machine replacement proposals, new product proposals, and plant expansion proposals are examples of traditional categories of capital budgeting projects that involve investments in tangible assets. Salary negotiations do not involve investment in assets and therefore would not be considered a traditional category of capital budgeting projects.

Which of the Following Would Not Be Judged a Traditional