A Study In The Justification Of Capital Expenditures

Author : Arthur V. Corr
Publisher : New York, N.Y. : National Association of Accountants ; Hamilton, Ont. : Society of Management Accountants of Canada
ISBN 13 : 9780866410915
Total Pages : 122 pages
Book Rating : 4.4/5 (19 download)

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Download or read book The Capital Expenditure Decision written by Arthur V. Corr and published by New York, N.Y. : National Association of Accountants ; Hamilton, Ont. : Society of Management Accountants of Canada. This book was released on 1983 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary objective of this study was to determine how capital expenditure decisions are made in manufacturing firms of various sizes in Canada and the United States. The study attempts to describe the policies, practices, and procedures related to capital expenditure decisions, emphasizing the role of the accountant and the use of financial information. More specifically, two major aspects of capital expenditure decision making, capital expenditure planning and financial appraisal of individual projects are examined. Also included is a description of the management process for developing, selecting, and implementing capital investment proposals. Further, the study identifies and describes the various techniques used in the financial appraisal of investment proposals and examines the concepts and methods used in measuring the investment required by a specific project and the economic benefits that it will bring. Sixteen American firms and eight Canadian firms from the following industries were studied: oil refining, chemical manufacturing, paper and pulp, steel milling and fabrication, heavy equipment, textiles, food processsing and electronic and information technology.