What is Capital Budgeting: Certification, Courses, Career, Salary, Admission & Fees

Rashmi KaranManager - Content
The most important the main purpose of companies is to get more profitability at the lowest cost and within the shortest time to recover investments quickly. Thus it is very much essential to carry out capital budgeting to maintain and survive the fluctuations that may lead to the failure of a project or a company’s operations. The cost of capital must offer a minimum return so that the investment can add value to the company.
What is Capital Budgeting?
“Capital budgeting is the process of planning and managing the company’s long-term investments”. Gómez S. (2015)
Capital budgeting is the process of making investment decisions regarding long-term assets, such as building new production facilities or investing in machinery and equipment. It is the process of deciding whether or not to invest in a particular project, as other investment possibilities may not be beneficial.
Capital budgeting enables the managers to identify, develop and evaluate investment opportunities that can be profitable for the company. This evaluation is made by checking whether the cash flows that the investment in an asset will generally exceed the flows required to carry out the said project.
Also read-
Capital budgeting is important because asset expansion usually involves huge expenses, and before a company can spend a large amount of money, it must have sufficient funds available. Therefore, a company contemplating a major capital expenditure programme should set up its financing several years in advance so that the required funds are available.
Capital budgeting aims to –
Balance the different financial sources, depending on the investments that the organisation intends to make
Determine the optimal financial structure, with an adequate proportion between own and external resources, trying to keep the cost of capital as low as possible
Facilitate the preparation of forecast accounting statements and operating budgets.
- Why Do Companies Need Capital Budgeting?
- Popular Private Capital Budgeting Colleges in India
- Capital Budgeting Methods
- How to Prepare a Capital Budget
- Why Should You Learn Capital Budgeting?
- Popular Capital Budgeting Specializations
- Most Popular Courses
- Top Capital Budgeting Courses
Why Do Companies Need Capital Budgeting?
You can check out the pointers below to know the main reasons why companies need a capital budget -
- For Evaluating LongTerm Investments
- To Give Resources Effectively
- For checking all the Risks
- To check the Time Value of Money
- Measuring the Performance
- Building Confidence of the Stakeholders
#11 Outlook
Accounting & Commerce Applications open. Apply Now
Popular Private Capital Budgeting Colleges in India
Accounting & Commerce Applications open. Apply Now
#113 The Week
Accounting & Commerce Applications open. Apply Now
Accounting & Commerce Applications open. Apply Now
#46 The Week
Accounting & Commerce Applications open. Apply Now
Capital Budgeting Methods
Methods used to evaluate fixed assets under a formal capital budgeting system are as mentioned in the pointers below for the ease of the students–
- Net Present Value (NPV) Analysis
- Internal Rate of Return
- Constraint Analysis
- Payback Period
- Avoidance Analysis
How to Prepare a Capital Budget
Find Investment options, calculate Cash Flows, focus on Profitable Projects, roll out the Project, and monitor and conduct a Post Audit are the steps you should follow to prepare a Capital Budget.
Know more about -
Banking Courses
Important Exam Dates
| Dates | Upcoming Exam Dates |
|---|---|
| 01 Dec ' 25 - 14 Jan ' 26 | IGNOU TEE Dec 2025 exam ONGOING |
| Dates | Past Exam Dates |
|---|---|
| 01 Mar ' 24 - 02 May ' 24 | Online Applications |
Some scenarios in which a company needs a capital budget imperatively are as follows:
Territorial expansion.
Conversion of the business to franchise.
Acquisition of companies from other countries as subsidiaries.
Investment in human capital based on advanced training.
Renewal of non-current assets, such as machinery or vehicle fleet.
Business line expansion.
Some limitations of capital budgeting are as follows:-
It has long-term implementations in business operations. Capital budgeting can't be used for short terms. A wrong decision in the early stages of the project can affect the company's long-term survival.
An inadequate investment makes it challenging for businesses to enhance their budget and capital.
Capital budgeting involves huge funds, so the decision must be taken carefully.
Decisions in capital budgeting could be more adaptable as locating the market for capital goods takes work.
Capital budgeting decisions have a long-term and significant effect on the business's profitability.
Higher degrees of risks involved because it requires predicting future cash flows for long-term investments.
Why Should You Learn Capital Budgeting?
Capital budgeting is a very important skill for business management, accounting and finance professionals. Capital budgeting helps the organizations in making sound investment decisions, managing risk, and maximizing profit. Learning capital budgeting can give different career opportunities and increase financial decision making skill. You can chek out some of the reasons why learning capital budgeting can be good for your career in the table given below -
- Make Strategic Investment Decisions
- Develop Risk Assessment Skill
- Master Discount Rate Calculations
- Gain Expertise in Lease vs. Buy Analysis
- Better Career options
- Financial Analyst
- Corporate Finance Manager
- Investment Analyst
- Management Consultant
Popular Capital Budgeting Specializations
Popular Specializations
- Capital Budgeting
5 Colleges
- Accounting and Control
1 College
Most Popular Courses
Top Capital Budgeting Courses
Listed below are some of the top online capital budgeting courses to help you gain the right skills.
|
Course Name |
USPs |
|
Capital Budgeting – The Investment and Financing decision by Udemy (Duration: 3 hours) |
|
|
Capital Budgeting Techniques in Financial Appraisal by Udemy (Duration: 3.5 hours) |
|
|
Project Valuation and the Capital Budgeting Process by Coursera (Duration: 17 hours) |
|
|
Financial Management for Managers - Capital Budgeting by Alison (Duration: 6 - 10 hours) |
|
|
Capital Budgeting Techniques by Great Learning (Duration: 1.5 hours) |
|
News & Updates
Student Forum
Answered 5 days ago
Form start march and April month
P
Beginner-Level 1
Answered a week ago
To apply for BCom at Bapuji Institute of Hi-Tech Education students must meet the eligibility criteria of having passed Class 10 and 12 from a recognised board with Science, Commerce or Arts, 3 years Diploma or 2 year JOC-ITI with Commerce related subjects. As long as students meet the requirements
C
Contributor-Level 10
Answered a week ago
Birla Global University provides scholarships to MCom students. The university provides 20% waiver to MCom students with 70% in graduation.
N
Guide-Level 15
Answered a week ago
St.Stephen's College, Kollam, gives merit-based admissions to the BCom course. Interested students can get admission to the course via the Kerala University centralised admission process. Also, once students submit their HSC scorecards, the university releases the merit list of shortlisted students
A
Contributor-Level 9
Answered a week ago
St.Stephen's College, Kollam, follows the FYUGP stands for a four-year UG programme, i.e., an educational model. Thus, the BCom course is offered for a duration of three years, BCom (Hons) for four years, and BCom Research for four years.
P
Contributor-Level 10
Answered a week ago
There are endless factors that one can consider while comparing St.Stephen's College BCom course with other colleges and institutions. One of the majors is St. Stephen's, offers a BCom general course, an honours course, and an honours with research. Thus, a student can look for the duration and type
C
Contributor-Level 10
Answered a week ago
As per the info. available on the website of the college, the complete number of seats for the BCom on St. Stephen College, Kollam, is 30. Also, this number of seats only belongs to the one specialisation of BCom course, i.e., Finance.
I
Contributor-Level 10
Answered a week ago
Students interested in taking admission to the BCom course at St. Stephen's College Kollam, have two ways to apply for the course, i.e., the website of the college/ website of the affiliated university. At the university website, students can select St. Stephen's College, Kollam, in the online form
A
Contributor-Level 10
Answered a week ago
The admission portal of the St. Stephen's College, Kollam sync the dates with Centralised Allotment Process (CAP) of Kerala University. Also, as per the information gathered from the website, students need to complete the application process in the month of May-June of every year.
K
Contributor-Level 10
Answered a week ago
The eligibility requirements for admission to the BCom course at St. Stephen's College, Kollam, are similar to those of other colleges too in which students need to complete their Class 12 from any stream and secure decent scores to get selected in the merit list.
T
Contributor-Level 10
Answered 2 months ago
Yes you can you have a great opportunity in this field
S
Beginner-Level 1
Answered 2 months ago
Company Secretary (CS): Focuses on corporate law, governance, and secretarial work, suitable for those interested in the legal and compliance aspects of business.
P
Beginner-Level 1
Answered 2 months ago
SBI and Tally are integral to the placement success for MBA students specializing in Banking and Financial Engineering from Chandigarh University. SBI provides practical exposure to banking operations, financial modeling, and risk analysis, allowing students to gain real-world experience and underst
A
Contributor-Level 10
Answered 2 months ago
Yes — AURO University (in Surat, Gujarat) *does* offer a B.Com program.
Here are some details: The programme is available full time. There is a version called *B.Com International / B.Com with ACCA*, which includes ACCA? aligned modules for global accounting & finance exposure. The eligibility requi
H
Beginner-Level 2
Answered 2 months ago
BCom and BBA at Chandigarh University are both solid, but they are very different from each other. BCom focuses on numbers, finance, and accounting, so you'll spend more time understanding money management, financial reporting, and taxation. BBA, meanwhile, is about managing people and business proc
S
Beginner-Level 2
Answered 2 months ago
Yes, you are eligible for the MAH MCA CET 2026 exam, but you have to meet other eligibility standards, mainly Mathematics at 10+2 level or Graduation Level (with additional bridge Courses as per the norms of the concerned University).
R
Contributor-Level 9
Answered 2 months ago
There are multiple scholarships offered by KSOU to BCom students with each of them having a different eligibility criteria. For financial aid scholarships, candidates must belong to the EWS, SC/ST, OBC etc. categories with a total family income of less that INR 2 lakh. For merit based scholarships,
S
Contributor-Level 10
Answered 2 months ago
Yes, candidates are eligible for several scholarships as a BCom student at KSOU. The KSOU scholarships include both government scheme financial aids as well as scholarships from the institute itself. The government schemes for KSOU scholarships are mainlyfor provided financial assistance to candidat
S
Contributor-Level 10
Answered 2 months ago
To get admission into the BCom course at Krupanidhi Group of Institutions, applicants are required to complete their Class 12 with good scores and apply for the course through the official website of the institution or offline by visiting the website. Further, according to applicants' achieved score
P
Contributor-Level 10
Answered 2 months ago
Yes, candidatescan take admissions into the Marwadi University BCom courses without appearing for the CUET entrance exam. Candidates who wish togain admissions into the Marwadi University are required to clear their Class 12 board exams and apply for admissions. Candidates can apply for admissions a
S
Contributor-Level 10
Answered 2 months ago
BCom courses at Marwadi University are offered in 2 different specialisations which are BCom at Digital Financing and Banking Financial Services & Insurance. Both of these specialisation courses share the same course duration of 3 years like the general BCom course. However, they have a higher tuiti
S
Contributor-Level 10
Answered 2 months ago
Al BCom courses at Marwadi University have a maximum duration of 3 years. Each year is divded into 2 semesters resulting in a total of 6 semesters within the BCom course at Marwadi University. The tuition fee for each BCom course is charged on a per semester basis meaning, there are 6 instalments of
S
Contributor-Level 10
Answered 2 months ago
The Placement scenario for B.Com graduates in India depends on the college and your performance but the good news is that commerce graduates are always in demand. Entry level jobs offer INR 2.5 to INR 4 LPA and with internships, certifications or higher studies, you can climb much higher. Also Many
P
Contributor-Level 7
Answered 2 months ago
Internships help you gain real world experience and in depth knowledge. Some options are mentioned below that you can intern in while pursuing a B.Com Degree:
- Accounting firms
- Banks and financial institutions
- Startups or SMEs
- Consulting firms
- Government bodies
Aim for internships that align with your inte
P
Contributor-Level 10
Answered 2 months ago
Yes, Definitely, B.Com is open to the students from all the streams whether it is arts, Science or other streams although you may need to put extra efforts initially to grasp accounting or finance concepts. Many students from engineering or arts successfully pursue B.Com and complement it with certi
M
Contributor-Level 7
Answered 2 months ago
After completing the Centurion University Bhubaneswar BCom course, students can work in various domains, including Oprations, Marketing, HR, etc. However, one of the most opted domain remains Finance. This is because, during the programme, students learn various concepts, such as Financial Accountin
S
Contributor-Level 10
Answered 2 months ago
The BCom admission process for Centurion University Bhubaneswar BCom programme starts with the application submission stage. The form can be accessed by visiting the university's official website. Once application stage is completed, the university conducts the CUEE exam on the scheduled date and ti
S
Contributor-Level 10
Answered 2 months ago
The total fees for a BCom at Centurion University Bhubaneswar BCom amount to INR 5.02 lakh. This fees is a combination of various fees charged by the university. Two of the main components are: tuition fees and hostel fees. The table below showcases the entire fee breakup:
Fee components | Amount |
|---|---|
Tuition Fees | INR 2.25 lakh |
Hostel Fees | INR 1.9 lakh |
Total Fees | INR 5.02 lakh |
Note: The above-mentioned f
S
Contributor-Level 10
Answered 2 months ago
Yes, CUTM Bhubaneswar offers scholarships to BCom students. Some of the scholarships offered by the university are the State Level Sports Scholarship, Centurion Staff Relative/Reference Scholarship, Centurion Staff Kids Scholarship, etc. To get a scholarship, students must ensure that they fulfil th
S
Contributor-Level 10
Answered 2 months ago
Yes, the Centurion University Entrance Examination is compulsory for students seeking admission to the Centurion University Bhubaneswar BCom course. This is an entrance test conducted by the university itself. On the basis of CUEE scores, students are ranked and allocated a seat. Moreover, candidate
S
Contributor-Level 10
Taking an Exam? Selecting a College?
Find insights & recommendations on colleges and exams that you won't find anywhere else
On Shiksha, get access to
- 65k Colleges
- 1k Exams
- 681k Reviews
- 1800k Answers
An example of capital budgeting in everyday life is a family deciding whether to buy a new car. The family would have to make an approximation of the cash inflows and outflows from buying the car, including the initial price, maintenance costs, fuel prices, and resale value.