Budgeting Basics and Beyond

13.4. Capital Budget

The capital asset budget includes beginning balance, additions, deletions, depreciation, construction in progress, and ending balance. The budget format should include category, class, project title, project number, project life, capital costs, and return on investment. The budget should contain a provision for explanatory comments.

Extraordinary repairs are usually included in the capital expenditure budget but ordinary repairs are included in the expense budget.

The production budget may require capital additions.

Exhibits 13.10 to 13.16 present illustrative capital budgets.