In the budgeting process, budgetary slack refers to the
A) practice of overestimating budgeted expenses and revenues.
B) practice of overestimating budgeted expenses and underestimating budgeted revenues.
C) practice of underestimating budgeted expenses and overestimating budgeted revenues.
D) practice of underestimating budgeted expenses and revenues.

Question

Quizplus · Accepted Answer

Budgetary slack is the intentional act of managers to overstate budgeted expenses and/or understate budgeted revenues to easily achieve targets.

In the Budgeting Process, Budgetary Slack Refers to the