How do strategic planning, long-range planning, and budgeting differ?

A. Strategic planning focuses on the effects that the operating budget and other plans (capital budget) will have on cash balances. Long-range planning usually has a horizon of one year or less, and focuses on the budgeted cost of activities required to produce and sell products and services. Budgeting usually covers no specific time period, is quite general, and often is not built around financial statements.

B. Strategic planning covers no specific time period, is quite general, and often is not built around financial statements. Long-range planning usually has a 5- or 10-year horizon and consists of financial statements without much detail. Budgeting usually has a horizon of one year or less, and consists of financial statements with much detail.

C. Strategic planning usually has a 5- or 10-year horizon and consists of financial statements without much detail. Long-range planning usually has a horizon of one year or less, and consists of financial statements with much detail. Budgeting usually covers no specific time period, is quite general, and often is not built around financial statements.

D. Strategic planning is an ongoing process that adds a month or a quarter as the month or quarter ended is dropped. Long-range planning usually has a horizon of one year or less, and consists of financial statements with much detail. Budgeting focuses on preparing budgets for various functions over a specific time period.