Which of the following is not a consequence of budgetary slack?
A)Resources may not be allocated in the optimal way.
B)Those who implement the budget may engage in undesirable behavior because they did have input into setting the budget.
C)Managers may receive bonuses they would not have earned if the budget had been prepared realistically.
D)All of these answer choices are consequences of budgetary slack.

Question

Quizplus · Accepted Answer

Budgetary slack occurs when managers intentionally underestimate revenues or overestimate expenses to make performance targets easier to achieve. Option B is incorrect because it suggests that undesirable behavior occurs due to lack of input in setting the budget, which is unrelated to budgetary slack.

Which of the Following Is Not a Consequence of Budgetary