Regarding capital rationing decisions for capital assets, which of the following is true? ⦁    Companies should always choose the investment with the shortest payback period. ⦁    Companies should always choose the investment with the highest NPV. ⦁    Companies should always choose the investment with the highest ARR. ⦁    None of the above are true.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.