Which of the following is NOT a reason for budgetary slack?
A) to buffer managers from budget cuts imposed by top management
B) to provide protection against cost increases or revenue shortfalls due to unforeseen events
C) to facilitate attainment of performance goals
D) to impose a formal structure for planning purposes

Question

Quizplus · Accepted Answer

Budgetary slack is often created intentionally by managers to reduce the chances of falling short of targets by setting lower goals than what they could realistically achieve. Option D is not a reason for budgetary slack as it emphasizes on the importance of formal planning and structure which can actually reduce the chances of slack. Options A, B, and C are commonly cited reasons for budgetary slack.

Which of the Following Is NOT a Reason for Budgetary