Question

. As a management accountant you were asked to introduce a system of capital expenditure control for your organization. Explain the important feature you want to incorporate in the system you propose to introduce with the suitable example of a project involving capital expenditure.

Answer 1

if I were Management Accountant the main thing which I have done in my project that I found what are the total expenditure of capital than I thought what can I do for capital expenditure

Answer 2

The following are the main objectives of control of capital expenditure: To make an estimate the total cash outlay is within the financial resources of the enterprise, to ensure  timely cash inflows for the projects not be a problem in the implementation of the project, to ensure all the capital expenditure is properly sanctioned, to properly co-ordinate the projects and to fix priorities among various projects.