capital planning

Definition

The process of budgeting resources for the future of an organization's long term plans. Capital planning for a business would include budgeting for new and replacement machinery, research and development and the production of new products, new plants and other major capital expenditures. Also called investment appraisal, capital budgeting.

Use capital planning in a sentence

  • The city I moved to is a poor example of capital planning; as a result, the public buses are old, break down often and should be replaced.

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  • The capital planning experienced by the professional was new to him so he was sure to learn from his colleagues.

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  • We knew we would be okay because we had a whole department dedicated to capital planning and making sure we would be safe in the future.

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