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Investment Appraisal - Relevance to Management Control

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Discuss and anlyse the relevance of investment appraisal to management control. Distinguish between financially justifiable and non-financially justifiable projects in reference to investment appraisal and how these affect the relevance to management control.
Solution
In order to understand the need for investment appraisal to management control, it is essential to understand the various types of investments and the degree of impact they have on a company’s growth. Management generally classifies all investments into financially justifiable investments and non – financially justifiable investments. The solution discusses the aspect that management has to weigh the both the financial and non-financial benefits of all its investment proposals before its acceptance to any of these.
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