Explain the concept of project monitoring and control in capital budgeting.

Explain the concept of project monitoring and control in capital budgeting.

Project monitoring and control in capital budgeting refers to the process of tracking and evaluating the progress and performance of a project to ensure that it is on track and aligned with the predetermined objectives and budget. It involves regularly monitoring the project's activities, costs, and timelines, and comparing them to the planned targets. This allows for early identification of any deviations or issues that may arise during the project's execution. By implementing effective monitoring and control mechanisms, project managers can take corrective actions, make necessary adjustments, and ensure that the project stays within the allocated budget and achieves its intended outcomes.