slack. Budgetary slack occurs when managers intentionally underestimate budgeted revenues or overestimate budgeted expenses in order to make it easier to achieve budgetary goals
Budgeting and long-range planning are not the same. One important difference is the time period involved. The maximum length of a budget is usually one year, and budgets are often prepared for shorter periods of time, such as a month or a quarter. In contrast, long-range planning usually encompasses a period of at least five years.
The master budget is a set of interrelated budgets that constitutes a plan of action for a specified time period. Operating budgets are the individual budgets that result in the preparation of the budgeted income statement. These budgets establish goals for the company's sales and production personnel. In contrast, financial budgets are the capital expenditure budget, the cash budget, and the budgeted balance sheet. These budgets focus primarily on the cash resources needed to fund expected operations and planned capital expenditures.

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A Sales forecast shows potential sales for the industry and a company's expected share of such sales.
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Operating budgets are used as the basis for the preparation of the budgeted income statement.
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The Master budget is a set of interrelated budgets that constitutes a plan of action for a specified time period.
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Long-range planning identifies long-term goals, selects strategies to achieve these goals, and