According to Cost Accounting - A Managerial Emphasis, Fourth Canadian Edition (Horngren et al):
1: Identification - Identify which types of capital expenditure projects are necessary to achieve the...
capital expenditure budget is a part of cash budget.cash budget involves managerial activities while capital expenditure budget involves day to day activities may be for long range or short range
Budgets have two types of items, current expenses and capital expenses. Current expenses are day to day expenses to keep your operations going. Your current expenses are your food, clothing, rent,...
its to maintain cost effectiveness
its allocating the capital among different branches like marketing, finance, adds.......
ex: allocation of budget for marketing activities