Alette Renn is the newly appointed chief accountant at Aerospace Data Components (ADC), which designs and manufactures data components for the aerospace and car industries. One of Alette’s early tasks was to review the budgeting and planning system. From her initial enquiries, she found the issue of ‘budgetary slack’ being mentioned by a number of managers.

Required
a. Explain what ‘budgetary slack’ is and why it might be a problem.
b. What advice would you offer to Alette regarding her courses of action with respect to ‘budgetary slack’?