Introduction: Decisions involve a choice between alternative courses of action. Management normally considers both financial and nonfinancial information to minimize unnecessary expenditures. Knowing what information will be required, and anticipating courses of action, will better prepare you to be a more effective manager.

Imagine you are the corporate financial officer (CFO) of a Fortune 500 company.

• Describe to your classmates the process your company would use in approving the capital expenditure budget. Remember that companies try to minimize expenditures.
• What evidence would you submit to top management to support your request for requested expenditures the company needs and why?