"Abandoning a project after heavy investment is made, is quite costly in terms of waste of funds. Therefore these decisions should be taken carefully" - This statement highlights which point of importance of fixed capital capital budgeting decision. - Identify.

Irreversible decisions

The correct answer is Option (1) → Irreversible decisions.

The statement highlights the importance of Irreversible decisions in fixed capital budgeting.

When a company makes an investment in a project, especially in fixed capital, it involves a large allocation of funds. Once a significant investment is made, it's often difficult or costly to reverse the decision. This makes it crucial to carefully evaluate such decisions to avoid the wastage of funds, as abandoning the project after heavy investment could lead to significant financial losses.