Research has shown that having several levels of management participate in the budgetary process is beneficial to both the company and the employees.However,there are certain behavioral problems encountered in the process,one of which is the use of budgetary slack.From the perspective of corporate management,the use of budgetary slack (CMA adapted)

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The use of budgetary slack involves purposely overestimating expenses and underestimating revenues in the budgeting process. This can result in inefficient resource allocation, as departments may receive more funds than necessary and use them for unnecessary expenditures. Therefore, the use of budgetary slack increases the likelihood of inefficient resource allocation.

Research Has Shown That Having Several Levels of Management Participate