Colin, the Manager of the Production Department in an Apparel

question 25

Multiple Choice

Colin, the manager of the production department in an apparel manufacturing company, is accused of budgetary slack by a senior manager in his company. Colin is accused of budgetary slack because he:

• A) did not create the company's budget in a timely and consistent manner.
• B) made errors in the budgeting process, which resulted in operational problems.
• C) did not include the minor expenses incurred by his department in the budget.
• D) overstated the needs of his department in the budget.

---

Definitions:

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Protective Covenant

Clauses in a bond or loan agreement that limit certain actions of the issuer to protect creditors' interests.

Financial Statements

Records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Expansion Project

An investment endeavor aimed at increasing the size, capacity, or capability of an existing facility or system to accommodate growth.