The maintenance department of an organization has been budgeted $500,000 for the current year's maintenance work. At
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The maintenance department of an organization has been budgeted $500,000 for the current year's maintenance work. At the end of the fiscal year, the general ledger shows that they have only spent $450,000 on maintenance. To avoid being granted $450,000 the next year, the manager has decided to wastefully spend $5,000. This is an example of
- use-it-or-lose-it mentality
- zero-based budget
- budgetary slack
- imposed budget
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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