capital budget

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capital budget

The monies that an enterprise allocates for the purchase of fixed and durable goods. In a hospital, the capital budget is used to purchase beds, buildings, equipment, and other items that are not part of its operating costs.
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References in periodicals archive ?
Capital budgeting has the important merit of spreading the cost of capital spending over many years.
Capital budgeting is the planning, evaluation and selection of investment projects that have yield in long term period.
"But what you also notice," Alsdorf says, "is that capital budgeting tends to have a 6- to 12-month time lag behind the stock market.
The main purpose of this work is to analyze the role and importance that determining risk and uncertainty in the capital budgeting process have on the financial efficiency of the project.
Capital budgeting is about analyzing and ranking potential investments based on the outlays and receipts that would result from each one.
(3) It also enhances awareness of the capital budgeting process and, therefore, leads to closer managerial control over the implementation of the capital budget.
"Capital budgeting is knowing what you're going to spend your money on in the next year (or two or three).
As a result, physician business and leadership training has focused on gaining an understanding of the elements of net present value analysis, as part of the capital budgeting process.