Question

The _____ budget is used for areas of an organization that incur expenses but no revenue, such as human resources and other support departments.

A. sales

B. production

C. cost

D. cash

E. capital

Answer 1

The correct answer is E. capital. An organization's capital budget is used for areas that incur expenses but no revenue, such as human resources and other support departments.

Step-by-step explanation:

The correct answer is E. capital.

An organization's capital budget is used for areas that incur expenses but no revenue, such as human resources and other support departments. It is used to allocate funds for long-term investments in assets that will provide economic benefits over time, rather than generate immediate revenue.

For example, a company may allocate funds from the capital budget to renovate its office space or purchase new equipment, which are investments that will contribute to the overall operation and efficiency of the organization without directly generating revenue.