Capital expenditure budget
The capital expenditure budget sets out planned spending on non-current assets — property, plant, equipment and major intangibles — during a budget period, feeding into both the cash budget and the budgeted balance sheet.
FrameworkMaster budget
See it move
A €500,000 machine approved in the capital expenditure budget flows into two other statements. The cash budget records the €500,000 outflow when payment is due, while the budgeted balance sheet adds €500,000 to property, plant and equipment and begins charging roughly €50,000 a year in depreciation.
Check yourself
A manufacturing company is preparing its annual master budget. Which of the following items would correctly appear in the capital expenditure budget rather than as a revenue expenditure item in the operating budget?