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what is Long term budgets
Long term budgets: The budgets are prepared to depict long term planning of the business. The period of long term begets various between five to ten years. The long term planning is done by the top level management; it is not generally known to lower levels of management long time begets are prepared for some sector of the concern such as capital expenditure research and development long term finances etc. these budgets are useful for those industries where gestation period is long i.e., machinery electricity engineering etc.
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Calculation
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Firms need cash to invest in inventory, receivables and fixed assets and to create payments for operating expenses, so as to increase earnings and sales and make sure the smooth ru
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