Question: What is budgetary slack? Why might managers try to build slack into their budgets?

What is budgetary slack? Why might managers try to build slack into their budgets?

Step by Step Solution

★★★★★

3.26 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Budgetary slack occurs when managers intentionally understate expected ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

389-B-C-A-B (1032).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

What is budgetary slack and why might it be detrimental to a company?

Q:

Managers may build slack into their budgets so that their target numbers are easier to attain. What might be some drawbacks to building slack into the budgets?

Q:

What is budgetary slack, and what might top managers do to rid their firms budgets of slack?

Q:

1. What are the major benefits of budgeting? 2. List the four budgeting objectives. Explain. 3. What are the components of a master budget? 4. What is budgetary slack? Why might managers try to build...

Q:

what is budgetary slack? Why might managers try to build slack into their budgets?

Q:

What is budgetary slack? Why might managers try to build slack into their budgets?

Q:

What is budgetary slack? Why might managers try to build slack into their budgets?

Q:

need help asap please Question 26 Which of the following is NOT a benefit of budgeting? O Allowing managers to build in some budgetary slack O Forcing managers to look ahead and state objectives for...

Q:

answer all questions Which of the following statements concerning budgets is true? OA A strategic budget is a long-term plan used to coordinate the activities needed to achieve the long-term goals of...

Q:

Question 2 Amin Arts produces and sells affordable artistic letter boards. The companys financial controller is compiling the budget data for the first quarter of 2021. The following information will...

Q:

On January 1, 2014, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinsons book value on that date consisted of common stock of $100,000 and...

Q:

What is amiss with the claim: The value of a stock is the discounted value of expected future cash flows?

Q:

Each accounting period, Harris Company Department Store charges a bookkeeping account for its estimated shoplifting losses. The method that Harris Company Department Store uses to fund its retained...

Q:

You are the manager for a company that wants to develop a new trade name for a new mobile application (mobile app). Come up with a new trade name for the mobile app (you do not need to create an app,...

Q:

Block A and block B are connected by a massless string over a smooth and massless pulley as shown below. The masses of block A and block Il are 2 kg and I kg respectively. The two blocks are released...

Q:

Two children sitting on a sled at rest in the snow ask you to pull them. You oblige by pulling on the sled's rope, which makes an angle of 40 with the horizontal (Figure 5- 7). The children have a...

Q:

Three people flip coins. If one person has a different face showing from the other two, that person loses and the game is over. Find the probabitlity that the number of turns taken to determine the...

Q:

Use algebraic manipulation to show that for three input variables x 1 , x 2 , x 3 for m(1,2,3,4,5,6,7)= x 1+ x 2 +x 3

Q:

(Capital asset pricing model) Breckenridge, Inc., has a beta of

Q:

TELUS Corporations income statement and balance sheet on MyLab Accounting provide details about the companys long-term debt and equity. Use the data to answer the following questions: 1. List the...

Q:

For which bond in S152 will Quebec Telecom have to pay the most at maturity? Explain your answer. S152 Compute the price of the following 4 percent bonds of Quebec Telecom: a. $100,000 issued at 98.5...

Q:

Oceanfront Developers Inc. issues $2,000,000 of 5 percent, semi-annual, 20-year bonds dated March 31. Required Record (a) The issuance of bonds at par on March 31 (b) The next semiannual interest...

Q:

calculate EV/EBITDA & PE ratio and price to cash flow ratio for alphabet price per share is 2879 pence per share and ordinary shares at the end of the year were 1,263,143,338 Fixed assets Fixed asset...

Q:

you been asked to make recommendations regarding capital budgeting for IDK, Inc. Specifically,the company has identified 5 projects that it is considering undertaking. The projects are independent...

Q:

Please show below with Excel calculations: Q4: Currency Swap Value On September 15th, 2013, ABC bank entered into a 2-year currency swap contract with GV Manufacturing, paying Euro fixed 6% and...