Research Has Shown That Having Several Levels of Management Participate

question 75

Multiple Choice

Research has shown that having several levels of management participate in the budgetary process is beneficial to both the company and the employees.However,there are certain behavioral problems encountered in the process,one of which is the use of budgetary slack.Budgetary slack can best be described as (CMA adapted)

• A)the elimination of certain expenses to enhance budgeted income.
• B)the planned overestimation of budgeted expenses.
• C)a "plug" number used to achieve a pre-set level of operating income.
• D)the planned underestimation of budgeted expenses.
• E)an inflation factor used to bring historic costs to current levels.

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Definitions:

Physical

Relating to or concerning the body as opposed to the mind or spirit.

Psychological

Relating to the mind or mental processes and how they influence behavior, emotions, and cognition.

Stressor

Any event or situation that causes stress, forcing an individual to adapt or react to mitigate the source of stress.

Stress Response

The body's reaction to any change that requires an adjustment or response, which can involve physical, mental, or emotional strain or tension.