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
Accounting & Commerce Applications open. Apply Now
#13 India Today
#6 India Today
Popular Private Capital Budgeting Colleges in India
#49 India Today
Accounting & Commerce Applications open. Apply Now
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 | Past Exam Dates |
|---|---|
| 01 Dec ' 25 - 14 Jan ' 26 | IGNOU TEE Dec 2025 exam |
| 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 9 hours ago
Yes, direct admission to the CKD Institute of Management and Technology, Amritsar BCom, is possible. The institute takes admission through the management quota. To apply through the management quota, candidates have to go to the campus of the college. Students still have to fulfil the basic educatio
A
Contributor-Level 10
Answered 9 hours ago
There are two main steps in BCom admission process in Lords Universal College:
Step 1: Registration on the University of Mumbai Samarth portal
Step 2: Lords Universal College application
Admission in BCom is given on the basis of eligibility and merit. After document verification, selected students ar
S
Contributor-Level 10
Answered 9 hours ago
Total BCom seats at Lords Universal College are distributed among course specialisations. the highest intake is for BCom programme at 720 seats. Course-wise seat intake is mentioned in the following table:
BCom programme | Seats
|
|---|---|
BCom | 720 |
BCom (Management Studies) | 300 |
BCom (Banking & Insurance) | 180 |
BCom (Accounting & Finance) | 60 |
S
Contributor-Level 10
Answered 9 hours ago
Lords Universal College fee for BCom courses varies according to the specialisation. The fee is mentioned in the table below:
BCom programme | Total Course Fee |
|---|---|
BCom | INR 30,820 |
BCom (Banking & Insurance) | INR 41,810 |
BCom (Management Studies) | INR 49,950 |
BCom (Accounting & Finance) | INR 55,570 |
S
Contributor-Level 10
Answered 9 hours ago
Eligibility criteria for BCome courses at Lords Universal College is mentioned the following table:
BCom programme | Eligibility |
|---|---|
BCom | Pass in Class 12 in any stream in a single attempt. |
BCom (Banking & Insurance) | Minimum 45% (40 % for Reserved Category ) in Class 12 in any stream in a single attempt. |
BCom (Management Studies) | Minimum 45% (40 % for Reserved Category) in Class 12 in any stream in a single attempt. |
BCom (Accounting & Finance) | Minimum 45% (40 % for Reserved Category) in Class 12 in Commerce stream in a single attempt |
S
Contributor-Level 10
Answered 9 hours ago
Kishinchand Chellaram College Cutoff 2026 was published for admission to several UG-level courses. The cutoff was published in the form of percentiles for various All India categories.
For the General AI category, admission to the BCom course was possible at a percentile of 91. For the OBC AI catego
N
Contributor-Level 10
Answered 10 hours ago
The rank needed for Kishinchand Chellaram College admission to various UG-level courses, like General, OBC, SC, etc. The cutoff was out in the form of percentiles for various All India quota categories.
For the General AI category, the minimum percentile needed was 61, according to the 2nd round of
N
Contributor-Level 10
Answered 10 hours ago
If you belong to the General AI category, the Malini Kishor Sanghvi College of Commerce and Economics first merit list 2026 for BCom ranged between 39.67 and 56. BCom course is offered across various specialisations, wherein the most competitive for admission in Round 1 was B.Com. in Banking and Ins
R
Contributor-Level 10
Answered 15 hours ago
No, the MSG-SGKM College of Arts, Science, and Commerce does not require any entrance exam for admission to the BCom programme. Admission to the BCom course is completely based on academic merit. Students must have passed class 12 with minimum aggregate of 45% marks to become eligible.
A
Contributor-Level 10
Answered 15 hours ago
Yes, students who have passed Class 12 with 60% marks in any stream are eligible for the BCom programme at MSG-SGKM College of Arts Science and Commerce. Marks required for the course are 45% (40% marks for the reserved category).
A
Contributor-Level 10
Answered 15 hours ago
The MSG-SGKM College of Arts, Science, and Commerce invites many giant companies to its campus every year. These companies recruit BCom graduates for various job roles. The top recruitment companies are:
- TCS
- Kotak Life
- Excelr
- Testriq
- VIP
- Bajaj
- Motilal Oswal, etc.
A
Contributor-Level 10
Answered 15 hours ago
International Institute of Professional Studies, Devi Ahilya Vishwavidhyalaya offer a three-year BCom programme. This course is spread across six semesters.
R
Contributor-Level 10
Answered 15 hours ago
Candidates wishing to take admission in BCom at International Institute of Professional Studies, Devi Ahilya Vishwavidhyalaya should qualify CUET UG exam conducted by NTA.
R
Contributor-Level 10
Answered 15 hours ago
While filling out the application form of MSG-SGKM College of Arts, Science, and Commerce BCom, students have to keep some documents ready. To complete the form, students have to attach the document. The documents are mentioned below:
- Class 10 marksheet
- Class 12 marksheet
- Passport size photograph
- ID pro
A
Contributor-Level 10
Answered 15 hours ago
Pursuing BCom at MSG-SGKM College of Arts, Science and Commerce is generally considered a decent choice, as the college offers BCom in two specialisations. Students can choose any course as per their choice. There are some more factors that make it worthwhile. See the factors below:
- Air-conditioned a
A
Contributor-Level 10
Answered 16 hours ago
There are a total of 240 seats available at MSG-SGKM College of Arts, Science and Commerce for BCom programme. Students should know that the college allocates the seat based on academic merit of the students. Students must satisfy the basic requirement to get a seat at MSM-SGKM College.
A
Contributor-Level 10
Answered 16 hours ago
The MSG-SGKM College of Arts, Science, and Commerce BCom admission process can be done both online and offline. The admissions are closed for 2026. Candidates who are wishing to get admission to the BCom course must wait till the admission starts again for the upcoming session.
A
Contributor-Level 10
Answered 16 hours ago
The MSG-SGKM College of Arts, Science, and Commerce offers two specialisations in the BCom course. Students can choose any BCom course as per their choice. But they have to fulfil the course-specific eligibility criteria. The offered courses are mentioned below:
- BCom in Management Studies
- BCom in Acco
A
Contributor-Level 10
Answered 16 hours ago
Yes, The MSG-SGKM College of Arts, Science, and Commerce offers BCom programme on an undergraduate-level. The BCom programme is available in two specialisations. Students who have passed Class 12 with 45% marks (40% for reserved category) are eligible for BCom course at MSG-SGKM College. The course
A
Contributor-Level 10
Answered Yesterday
Yes, PSG of arts and science (PSGCAS)in coimbatore offers comprehensive commerce programms designed to prepare students for competitive professional cerification like ACCA
M
Beginner-Level 1
Answered Yesterday
Yes, Loyola College, Chennai BCom admission is open in academic year 2026. Candidates who fulfill BCom eligibility criteria can apply from admission portal online or offline.
An admission schedule has not been revealed yet by Loyola Chennai.
S
Contributor-Level 10
Answered Yesterday
Classes for BCom in Computer Applications, Accounting & Finance and BCom (hons) at Loyola College, Chennai are conducted from 8:15 am till 1:15 pm. Rest of the BCom courses have a different time for classes which matches other UG courses of Loyola Chennai.
S
Contributor-Level 10
Answered Yesterday
Loyola College, Chennai BCom courses have a different fee amount between specialisations. This difference comes from course category as well as a candidate's Class 12th board.
For non aided category of BCom courses, candidates need to pay somewhere between INR 55,305 - INR 88,510.
S
Contributor-Level 10
Answered Yesterday
Students with good academic performance and attendance record are eligible for the merit scholarship offered by college. For scholarships under Government schemes, students can check the eligibility and other details on the MahaDBT portal.
B
Contributor-Level 10
Answered Yesterday
The college provides merit scholarships to students. It is based on academic performance and attendance of the applicant throughout the year. Other than this, scholarships as per the MahaDBT schemes are also provided to students.
B
Contributor-Level 10
Answered Yesterday
VVUC offers two BCom courses. Both of them are offered for three years and in full-time mode. The total fee for the entire duration is NR 65,370 and INR 1.08 Lacs for BCom and BMS respectively. Also, the institute provides placement opportunities as well. The highest package offered to BMS students
B
Contributor-Level 10
Answered Yesterday
The course is offered for three years. The syllabus is divided in six semesters. Each semester includes many subjects. Every subject has a particular number of credits. Some first year BCom subjects are Commerce-I (Introduction to Business), Fundamentals of Startups, Negotiation Skills, etc.
B
Contributor-Level 10
Answered Yesterday
The core subjects taught in both of the courses are different. However, some common first semester subjects are Content Writing, Rural studies I, etc. Curriculum is divided in six semesters. Students get to learn many core subjects during the course.
B
Contributor-Level 10
Answered Yesterday
The Bachelor of Commerce (BCom) has more number of seats, i.e. 480. The college offers total 180 seats in BMS. Seat allotment in both courses are done by the college only. It is completely based on Class 12 marks of applicants. The college releases multiple merit lists after application deadline.
B
Contributor-Level 10
Answered Yesterday
The college provides total 480 seats in BCom. For Management Studies, total 180 seats are provided. The seat allotment process is conducted by the college. It releases multiple merit lists of selected students. The list is based on Class 12 marks.
B
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
- 66k Colleges
- 1k Exams
- 695k Reviews
- 1850k 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.