Which of the following statements is correct?
A)Long-range planning is just another term for budgeting.
B)Budgeting and long-range planning differ with respect to emphasis, detail and time period.
C)The only difference between budgeting and long-range planning is the time frame.
D)Budgeting is the first step in long-range planning.

Question

Quizplus · Accepted Answer

Budgeting and long-range planning are two separate processes. Budgeting is concerned with short-term financial planning, usually for a period of one year or less, and involves detailed financial projections for various departments or activities. Long-range planning, on the other hand, looks beyond the next fiscal year and may cover a period of five to ten years or more. It involves broader strategic considerations and may not be as detailed as budgeting. Therefore, option B is the correct statement.

Which of the Following Statements Is Correct