Which of the following is true of budgetary slack? Question 14 options: Budgetary slack occurs when a manager deliberately underestimates revenues or overestimates costs in order to make budgeted expectations more easily achievable in the future. Budgetary slack occurs when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers. It occurs when top management simply obtains formal acceptance of the budget from subordinate managers without seeking real input. It reflects operating realities such as actual level of activity, seasonal variations, and general economic trends. None of these

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Katrina Rush

Business

4 October, 12:30

Which of the following is true of budgetary slack? Question 14 options: Budgetary slack occurs when a manager deliberately underestimates revenues or overestimates costs in order to make budgeted expectations more easily achievable in the future. Budgetary slack occurs when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers. It occurs when top management simply obtains formal acceptance of the budget from subordinate managers without seeking real input. It reflects operating realities such as actual level of activity, seasonal variations, and general economic trends. None of these

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Allyson Rios · Answer 1

Budgetary slack occurs when a manager deliberately underestimates revenues or overestimates costs in order to make budgeted expectations more easily achievable in the future.

Budgetary slack is an issue mainly involved with participative budgeting where all levels of management are involved.

Option A is correct