Preparation of capital budget and appropriation


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Preparation of capital budget and appropriation

Project involving smaller outlays and which executives at lower levels can decide are often covered by a blanket appropriation for expeditious action. Project involving larger outlays are included in capital budget after necessary approvals. Before undertaking such project appropriation order is usually required. The purpose of this check is mainly to ensure that the funds position of the firm is satisfactory at the time of implementation. Further, provided an opportunity to review the project at the time of implementation.

 


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