Which of the following is true of budgetary slack?

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

b. Budgetary slack occurs when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers.

c. It reflects operating realities such as actual level of activity, seasonal variations, and general economic trends.

d. It occurs when top management simply obtains formal acceptance of the budget from subordinate managers without seeking real input.

e. None of these choices are correct.

Answer rating: 100% (QA)

Budgetary Cushion increase slack is a budget that the chance of the ... View the full answer