Consider the following statements about budgetary slack:
I. Managers build slack into a budget so that they stand a greater chance of receiving favorable performance evaluations.
II. Budgetary slack is used by managers to guard against uncertainty and unforeseen events.
III. Budgetary slack is used by managers to guard against dollar cuts by top management in the resource allocation process.
Which of the above statements is (are) true?

Question

Quizplus · Accepted Answer

All three statements are true as managers use budgetary slack for favorable evaluations, to guard against uncertainties, and to protect against resource allocation cuts.

Consider the Following Statements About Budgetary Slack