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13. Which of the following budgets is not directly associated with the production budget? a. direct materials purchases budge
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Answer #1

Capital expenditure includes expenses to purchase, maintain or improve fixed assets such as building, vehicle, equipment or land. Capital budget or capital expenditure plan are payments made to generate financial benefit for a period longer than one year. This distinguished capital expenditure from ongoing operating or production expenses.

Capital expenditure budget is not directly associated with the production budget.

Hence option “c. capital expenditure budget” is correct answer.

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