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Budget Plan

A budget plan estimates the income and expenditures for a planning unit, whether an individual, group or organization. A budget plan is for a fixed period of time. When the time period is 1 year, the term annual budget is appropriately used. When the expenditure period exceeds 2 years it is appropriate to call the spending plan a strategic budget. When the focus of the budget is on capital expenditures for durable goods, buildings, etc. the best term for the plan is a capital budget.



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