Long-range budget

A long-range budget is a financial plan that extends for more than one year into the future. This type of budget typically covers a five-year period and is focused on the strategic direction of the business. The orientation of this budget is toward the following areas:

  • New product planning
  • Capital investments
  • Acquisitions
  • Risk management

Since changes in competition levels and the business cycle make it difficult to plan this far into the future, the long-range budget typically aggregates much of the information found in an annual budget into a smaller number of line items.

Related Courses

Budgeting 
Capital Budgeting