A benefit of self-imposed budgeting is that it may allow lower-level managers to create budgetary slack.

Question

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Self-imposed budgeting typically involves upper-level management setting a budget and allowing lower-level managers to operate within that budget. Creating budgetary slack, which is intentionally overestimating expenses or underestimating revenues, is not a desirable practice as it can lead to inefficiencies and inaccuracies in financial reporting. Therefore, self-imposed budgeting does not encourage or allow for the creation of budgetary slack.

A Benefit of Self-Imposed Budgeting Is That It May Allow