Usually summarized annually in the budget

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Class, the capital decision-making process in the health-care industry is complex. In Capital project analysis there is an ongoing activity, but it is not usually summarized annually in the budget. The capital budget is the yearly estimate of resources that will be expended for new programs during the coming year. Capital budgeting may be considered as less comprehensive and shorter term than capital project analysis.

Cleverley (2011) discussed that the more important classifications of capital expenditures are as follows:

• Period during which the investment occurs

• Types of resources invested

• Dollar amounts of capital expenditures

• Types of benefits received

Discuss the kind of decisions that are made in each stage.

Reference no: EM131296860

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