Capital Budgeting Is Both a Decision Making and Control Tool

Multiple Choice

Capital budgeting is both a decision making and control tool. Which of the following is an example of capital budgeting as a control tool?

A) A company uses capital budgeting techniques to evaluate a group of prospective alternative projects.
B) A large manufacturer sets up a "capital relief" fund to help supplement sustainability projects that would not meet targeted rates of returns without the capital relief fund assistance.
C) When considering capital expenditures, a company looks at a minimum of six potential (alternative) projects.
D) A company's capital project is not meeting the level of profitability expected, will not meet the targeted NPV, and is abandoned.