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Let us explain you some brief requirement for your capital expenditure control homework help.
Sometimes while making the budget for the expenditure of the corporate, it is mandatory to follow the regulations of the budget and control the same under a proper format.
Objective of capital expenditure control
- Be updated with the estimate of the capital expenditure in order to make sure that the cash outflow is within the parameters of the financial resources
- Ensuring timely inflow for the projects in order to sustain the quality of implementation even under un-availability of the funds
- Proper sanction of capital expenditure
- Coordinating project with different departments
- Prioritizing the project need and resources
- Comparing the periodic capital expenditure budget and controlling the same if not appropriate
- Avoiding over expansion and unnecessary recourse needs
- Measuring the project performance
Steps to control the capital expenditure:
- It is important to keep a record of the capital expenditure and control the step with every step followed and verified to the expected level:
- Preparing capital expenditure budget
- Authorizing capital expenditure
- Controlling and recording the capital expenditure
- Evaluating the project performance
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