Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of _____.
A) outwrestling
B) budgetary slack
C) extortion
D) budget maximization

Question

Quizplus · Accepted Answer

Budgetary slack is the intentional overstatement of expenses or understatement of revenues in a budget to create a cushion for unexpected events or to make the budget appear more difficult to achieve.