Certified Management Accountant 2025 – 400 Free Practice Questions to Pass the Exam

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Which is NOT a stage in the capital budgeting process?

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Measurement

The capital budgeting process typically involves several key stages that organizations follow to make informed investment decisions. The stages generally include search, selection, and implementation and monitoring.

In this context, "measurement" is not a recognized stage in capital budgeting. While measurement does play a role in evaluating potential investments—for example, calculating cash flows, assessing risk, or determining returns—it is not categorized as a specific phase in the overall capital budgeting process.

The stages that are recognized focus more on the broader actions taken in the process, such as searching for potential projects, selecting which ones to pursue based on analytical criteria, and then implementing and monitoring the chosen projects. Thus, while measurement is crucial for analysis, it does not fit into the conventional stages identified in capital budgeting.

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Implementation and Monitoring

Selection

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