Answer (D) is correct. Capital budgeting is the process of planning expenditures for investments on which the returns are expected to occur over a period of more than 1 year. Thus, capital budgeting concerns the acquisition or disposal of long-term assets and the financing ramifications of such decisions. The adoption of a new method of allocating nontraceable costs to product lines has no effect on a company’s cash flows does not concern the acquisition of long-term assets, and is not concerned with financing. Hence, capital budgeting is irrelevant to such a decision.