Undesirable behavior is especially common in a bottom-up budget environment because managers
A)may be required to explain unfavorable outcomes for amounts for factors they are able to control that caused the outcomes.
B)have the ability to include budgetary slack to increase his or her chances of receiving a favorable performance evaluation.
C)tend to employ tactical planning.
D)do not control excess spending, and often exceed budgeted expenses.

Question

Quizplus · Accepted Answer

In a bottom-up budget environment, managers have the ability to include budgetary slack, which means intentionally overestimating expenses or underestimating revenues to increase their chances of receiving a favorable performance evaluation. This can lead to undesirable behavior such as wasteful spending or padding the budget with unnecessary expenses.

Undesirable Behavior Is Especially Common in a Bottom-Up Budget Environment