Tag Archives | Financial Management

What is Budget?

Budget is a plan of operations to be carried out during a specified future period and this plan comprises all aspects of business activities and summarizes the result of carrying out this plan. The word Budget is derived from a French word Bougette representing a leather pouch into which funds were appropriated to meet the anticipated expenses. However the word [...]

By |2023-02-04T15:19:16+05:30April 30, 2022|Budgeting|Comments Off on What is Budget?

Capital Budgeting Methods

Everything you need to know about capital budgeting methods. Some of the capital budgeting methods are:- 1.Traditional Methods 2.Modern Methods 1. Traditional methods includes: a.Payback Period Method (PBP) and Its Variants - Post back period, Post payback profitability method, Discounted payback period b.Accounting Rate of Return Method (ARR) 2. Modern methods includes: a.Net Present Value (NPV) b.Profitability Index (PI) or [...]

By |2023-01-30T18:29:13+05:30April 29, 2022|Capital Budgeting|Comments Off on Capital Budgeting Methods

Capital Budgeting

Capital budgeting is a process which helps enterprises in examining the financial implications of the long term investment projects. The decision of accepting or rejecting an investment project as part of a company's policy depends upon the investment rate of return that such a project will generate. Capital budgeting is the process of evaluating and selecting investments in capital assets [...]

By |2023-01-13T18:45:43+05:30April 29, 2022|Financial Management|Comments Off on Capital Budgeting
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