even point and seen a full return on the investment, plus more. It took the business to see a return in 2.8 years.It is important that capital budget be kept separate from expense budget. This is because an expense budget is subtracted from the direct revenue. An expense budget would include items such as basic office supplies (paper, stapler, notepads, etc.), items that would not be considered assets, whereas a capital budget would include items that provide for the business on a long term and could be considered assets, such as computers. Capital budget items would continue to show on a company’s balance sheet as items that still have value for long periods of time. Expense budget items have a short term value, which are shown a cost to the company (Merritt, n.d.).ReferencesMerritt, C. (n.d.). Operating Expenditure vs. Capital Expenditure. eHow. Retrieved from http://www.ehow.com/info_8007447_operating-expenditure-vs-capital-expenditure.htmlCuringa, K. (n.d.). How to Prepare a Capital Budget. Small Business Chronicle. Retrieved from http://smallbusiness.chron.com/prepare-capital-budget-46633.htmlCapital (n.d.). Investopedia. Retrieved from http://www.investopedia.com/terms/c/capital.asp#axzz2MnuXCJEZ
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