Question

Which of the following is NOT true about Capital Budgeting
Capital Budgeting decisions have an influence on the future stability of an organisation
Capital Budgeting decisions include investments to expand the business
Capital Budgeting decisions are of an irreversible nature
Sunk cost is a part of Capital Budgeting

Answer 1

The statement that is NOT true about Capital Budgeting is:
Sunk cost is a part of Capital Budgeting.
Sunk costs are costs that have already been incurred and cannot be recovered. They should not be considered in capital budgeting decisions as they do not affect future cash flows.