Strategic planning for purchasing new manufacturing equipment is an example of what?

The correct choice is capital budgeting. This concept refers to the process that companies use to evaluate and decide on major investment projects, such as purchasing new manufacturing equipment. It involves analyzing the potential return on investment (ROI) and assessing whether the expenditure aligns with the company's overall financial strategy and goals.

In capital budgeting, businesses consider factors like the cost of the equipment, expected lifespan, maintenance expenses, and the revenue it can generate. The goal is to ensure that the resources are allocated efficiently to projects that will yield the best financial returns over time.

Operational planning, while important, primarily focuses on the day-to-day operations of the business and does not typically include long-term investment decisions. Financial forecasting relates to predicting future financial outcomes based on historical data and trends, which is a different aspect of financial management. Cost accounting involves tracking, analyzing, and controlling costs, which is also not directly related to the decision-making process of capital investments. Thus, recognizing capital budgeting as the correct context for strategic planning on purchasing equipment highlights its role in long-term financial strategy and investment analysis.