Budget slack is a condition in which
A)demand is low at various times of the year.
B)excess machine capacity exists in some areas of the plant.
C)there is an intentional overestimate of expenses or an underestimate of revenues.
D)managers grant favored employees extra time off.

Question

Quizplus · Accepted Answer

Budget slack refers to the intentional overestimation of expenses or underestimation of revenue by managers. This is done to create a cushion in the budget that can be used in cases of emergencies or to meet unforeseen expenses. This creates a situation where the actual performance may be better than what was budgeted, which is seen as a positive outcome.

Budget Slack Is a Condition in Which