capital budget

Definition

A plan to finance long-term outlays, such as for fixed assets like facilities and equipment.

Use capital budget in a sentence

You should try to have a good strategy for your capital budget so that you know you are using your time wisely.

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The capital budget was used for the development of our new warehouse on the border between Mexico and the United States.

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After checking the balance sheet for the company there was a low balance of available cash funds, assets and high liabilities which required a reconstruction of the account to include a capital budget of $975,000 for a new office building.

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capital rationing cutoff point