Mallards Manufacturing's budget for the next year is due by October 31 of the current one. Emma, the head of the production department, received an Excel file with the previous year and current year costs for her department. Emma has been asked to use the information to create the budget for the department for next year. Emma met with the department supervisors to get their input on the budget. After she met with the supervisors, she added an additional 10% to each of the categories before submitting the budget to finance. This budgeting method could be described as a(n)

Question

Quizplus · Accepted Answer

Developing a budget using input from the employees that are most knowledgeable about activities that affect an area is called a participative budget, and increasing the budget amount above what is genuinely thought to be needed in order to make it easier to meet goals is called adding slack.

Mallards Manufacturing's Budget for the Next Year Is Due by October