Leasing of machinery can be categorized as______a.Capital budgeting decisionb.Investment decisionc.Financing decisiond.Fixed asset

The leasing of machinery involves the decision regarding how a company acquires and manages its assets, which can have significant financial implications. To analyze which option best categorizes leasing machinery, let's examine the choices:

1. Capital budgeting decision: This refers to the process of planning and managing a company's long-term investments. While leasing can influence capital budgeting, it is not solely categorized as such.

2. Investment decision: This involves deciding where to allocate funds to maximize returns over time. Leasing machinery represents an investment in operational capacity but is primarily about usage rather than ownership.

3. Financing decision: This relates to how a company raises capital to fund its operations. Leasing falls under financing because it allows a company to use machinery without the upfront costs associated with purchasing it outright.

4. Fixed asset: Equipment and machinery are often classified as fixed assets, but leasing itself is not categorized that way since it does not involve ownership implications.

Final Answer

The leasing of machinery can best be categorized as c. Financing decision.