RELATED REVIEW LITERATURE

Inflation
According to Mckinsey & Company (2023), a rise in the cost of goods and services is
referred to as inflation, which is also known as the gradual loss of buying power. The average
price rise of a selection of products and services over time can serve as a proxy for the pace at
which buying power declines. A unit of currency essentially buys less as a result of the
increase in pricing, which is sometimes stated as a percentage. As stated by Fernando, J.
(2023), demand-pull, cost-push, and built-in inflation are the three different forms of
inflation. Those who have more money tend to spend more and pay more because there is a
demand-supply imbalance, which causes demand-pull inflation. Cost-push inflation occurs
when prices rise as a result of increases in the cost of production, such as when funds are
invested in commodities or other asset markets, which raises the price of final goods or
services and drives up consumer prices. Built-in inflation results from individuals anticipating
that present inflation will continue, which raises salaries and increases the price of goods and
services, creating a wage-price spiral. According to Gaal, WV (2021), prior to the European
Central Bank (ECB) meeting, Greenpeace published a study that revealed that natural
disasters may affect market prices to fluctuate, both upward and downward. Climate change
may cause inflationary pressures in the ensuing decades as a result of natural disasters.

Carinderia
According to Taxguro (20220, it is a small, family-run restaurants that specialize in Filipino
cuisine. It is frequently located next to one another and focuses on a certain food or cuisine.
Offering cheap and wonderful cuisine, it is highly well-liked by the neighborhood. There are
two carinderia establishments: the "turo-turo" carinderia and the "sit-down" carinderia. As
stated in Abunda (2018), it became into a gathering place for office workers, particularly
during lunch. The carinderia not only provided meals that were accessible but also reasonably
priced and resembled home-cooked food. Long queues of consumers waiting to order food
from a tiny enclosed display window were a common sight.

Business Income
According to Touvila (2022), a sort of earned income, business income is categorized as
regular income for tax purposes. It includes all revenue generated by an entity's operations. It
is a business entity's net profit or loss, which is determined by subtracting all of its sources of
revenue from its operating expenses. Conforming to Canada (2022), income from a service
firm is an instance of business income. Employment earnings, such as wages or salary
received from an employer, is excluded from business revenue.
Budget Capital
In accord with Accounting Tools (2022), a firm uses capital budgeting to decide which
planned fixed asset purchases it should approve and which it should reject. Each proposed
fixed asset investment is given a quantitative assessment through this procedure, providing a
sound foundation on which to base a decision. In line with Pinkasovitch (2022), a long-term
financial strategy for higher financial outlays is capital budgeting. It utilizes the same
essential techniques as other budgeting methods, but it differs in that it cannot be funded
internally and must come from an external source. For long-term projects, capital budgeting
is frequently created and then updated as work goes. It's crucial to prepare in advance for
substantial financial withdrawals that shouldn't halt unless the business is ready to bear the
costs or losses associated with a possible project delay.

According to Causal (2023), there are three types of capital budgets: capital finance, capital
expenditure, and capital maintenance. The budget for capital expenditures covers long-term
assets, upgrades, and renovations. The total amount of money allocated for the purchase of
new long-term assets, such as a building or plot of land, is included in the capital finance
budget. It also includes the money needed to finance the upgrades to current long-term assets.
A capital maintenance budget prioritizes repairing and maintaining current long-term assets
rather than purchasing new ones or funding upgrades.

As stated by Indeed (2022), a useful method for determining the worth of a project over the
course of its life cycle is capital budgeting. It enables investors to assess their available
investment possibilities and choose the ones that are most worthwhile. Financial decision-
makers can make well-informed financial choices for projects that call for a significant
capital outlay, such as purchasing new machinery, technology, and buildings, maintaining
and upgrading already-existing machinery and technology, finishing renovations on already-
existing structures, increasing their workforce, creating new products, and entering new
markets. Businesses can use capital budgeting to gauge the success of their investment
choices as well as the status of their projects.
REFERENCES
Mckinsey & Company (2023). What is inflation?

https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-inflation

Fernando, J. (2023). Inflation: What it is, How it can be controlled, and Extreme examples

https://www.investopedia.com/terms/i/inflation.asp

Gaal, WV. (2021). Natural disasters drive inflation, study finds

https://euobserver.com/green-economy/152870

Taxguro (2022). Carinderia Business: What You Need to Know

https://www.philippinetaxationguro.com/carinderia-business/

Abunda, B. (2018). Carinderias are close to our hearts

https://www.philstar.com/entertainment/2018/05/01/1810928/carinderias-are-close-
our-hearts#:~:text=It%20became%20a%20hub%20for,a%20small%20enclosed
%20display%20window.

Canada (2022). Business income

https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-
self-employed-income/business-income-tax-reporting/business-income.html

Accounting Tools (2022). Capital budgeting definition

https://www.accountingtools.com/articles/what-is-capital-budgeting.html

Pinkasovitch, A. (2022). Capital Budgeting: What It Is and How It Works

https://www.investopedia.com/articles/financial-theory/11/corporate-project-
valuation-methods.asp

Causal (2023). Capital Budget: Financial Modelling Terms Explained

https://www.causal.app/define/capital-budget#:~:text=A%20capital%20budget%20is
%20important,profitability%20of%20a%20new%20investment.

Indeed (2022). Capital Budgeting: Definition, Importance and Different Methods

https://www.indeed.com/career-advice/career-development/capital-budgeting