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Which one of the following is not normally a characteristic of major capital expenditure projects?

(a) The benefits from the expenditure will rise over a number of years. (b) The costs can be estimated with a fair degree of certainty. (c) The project is likely to involve considerable expenditure. (d) The project is an important part of a company’s strategic planning.

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Date Posted: 2013/08/25
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imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (b)

The major capital expenditure normally involves long term horizon and so uncertainty is inevitable.  

Nagoorammal Abdul Rahman
by Nagoorammal Abdul Rahman , Finance Manager , Vox Spectrum Limited

Answer is B: The cost can be estimated with a fair degree of certainity.
Capital expenditure projects are of long term in nature.
In the long run certainity is a question Mark.
  The others are of its characteristic ush as the benefit arise over a number of yrs, is likely to involve considerable expenditure, it is an impartant part of a company's strategic planning.

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