________ is the practice of underestimating budgeted revenues,or overestimating budgeted costs,to make budgeted targets more easily to achieve.

Question

Quizplus · Accepted Answer

Budgetary slack is the practice of deliberately overestimating expenses or underestimating revenues in order to make it easier for the actual results to meet the budgeted targets. This is done to create a cushion or a safety net in case actual results fall short of the budgeted targets. It can be detrimental to a company's performance in the long run as it can mask underlying operational inefficiencies and lead to missed opportunities.

________ Is the Practice of Underestimating Budgeted Revenues,or Overestimating Budgeted