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Running head- Managerial AccountingMANAGERIALACCOUNTING
1Managerial AccountingAnswer 1.Some non-financial factors that are considered more important than they were considered in thepast 20-25 years ago in capital investment decisions are as follows:The reputation of the firm – now the main thing depend is on the reputation that is the reputationof the firm now a day become vital and central to capital investment decision (Graham et al.,2015). Capital investments that could enhance the firm’s reputation are preferred over otherprojects.Environmental issues – the huge impact of capital investment decision is found on theenvironment. So it is also considered as an important non-financial factor in making a capitalinvestment decision. As nowadays only economy and environment-friendly capital investmentproject are demanded.Morale of employees – The decision to accept or reject a capital investment project also dependsupon the effects of the decision over employees' morale. That is whether the employees' want tobe associated with such project or not.Answer2.Mainly all the capital investment decisions are taken by the top level managementlike the CEO,CFO and COO levels of executives. As capital investment decision have a long-term impact onthe company performance and growth, and it is not simple to take a decision, and neither is ittaken by the operational manager.
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