Which aspect is NOT considered in capital budgeting?

Capital budgeting is a critical process in financial management that involves evaluating potential investments or projects to determine their viability and alignment with an organization’s strategic goals. When making capital budgeting decisions, various factors are typically considered, including the potential return on investment, which helps assess the profitability of the proposed investment. The cost of investment is also a key consideration, as it encompasses all expenses associated with acquiring and implementing the project.

Market trends significantly influence capital budgeting, as understanding the broader economic environment and consumer preferences can help organizations gauge whether an investment will succeed in the current market conditions.

In this context, employee salaries are not typically included in the capital budgeting process because capital budgeting focuses on long-term investments rather than operational costs or ongoing expenses. Salaries are part of operational budgeting and are assessed separately, as they do not directly relate to the evaluation of capital assets or investments. Therefore, this choice stands out as it does not align with the core considerations of capital budgeting.