The basis on which capital budgeting plans are made is a company's three- to five-year strategic plan.

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Capital budgeting plans are made based on a company's strategic plan, which typically covers a period of three to five years. This plan outlines the company's goals and objectives, which guide decisions on how to allocate resources, including capital expenditures. By aligning capital budgeting decisions with the company's strategic plan, managers can ensure that they are investing in projects that will help to achieve the organization's long-term objectives.

The Basis on Which Capital Budgeting Plans Are Made Is