Managers may intentionally build slack into the budget

Question

Quizplus · Accepted Answer

A) Managers may be uncertain about the future and want to build some slack into the budget to account for unexpected events or changes.
B) Managers may want to make their performance appear better by setting lower targets and then exceeding them, creating the appearance of efficiency and effectiveness.
C) Managers may want to have resources available in the event the organization implements a budget cut, so they can respond quickly and maintain necessary operations.

Therefore, all of the above are true, and D is the correct answer.

Managers May Intentionally Build Slack into the Budget