Which of the following is correct about budgetary slack?
A)Budgetary slack is a bit of cushion built into a budget,making it more likely budgetary goals will be met.
B)Managers may include budgetary slack by overstating budgeted sales figures.
C)Managers may include budgetary slack by understating budgeted expense figures.
D)Budgetary slack helps managers make responsible spending decisions since it removes performance evaluations based on budgeting.

Question

Quizplus · Accepted Answer

Budgetary slack is the practice of underestimating revenues or overestimating expenses to make budgetary goals easier to achieve, as described in option A.

Which of the Following Is Correct About Budgetary Slack