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Describe the key differences between a capital budget and an operating budget.

Describe the key differences between a capital budget and an operating budget.
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Answer #1
Capital Budget Operational Budget
Nature These are related to expenditure on capital nature items like fixed assets , etc These are related budget for day to day operations
Period This is usually have longer period These are for shorter period
Purpose These are prepared for expansion of the company These are prepared to support the execution of the expansion
Management Role of top management is more crucial Role of all the management is crucial
Funds These involve huge investment There involves lower investment relatively
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