Intentionally Understating Revenues and / or Overstating Costs During a Budgeting

question 44

Multiple Choice

Intentionally understating revenues and / or overstating costs during a budgeting process is called:

• A) Budgetary slack
• B) Zero-based budgeting
• C) Fraudulent financial reporting
• D) Participative budgeting

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Definitions:

Risk Mitigation

The process of planning and implementing measures to reduce vulnerability to risks and their impact on a project, business, or operation.

Service Quality

The comparison of perceived expectations with actual service performance, typically used in evaluating customer satisfaction in service industries.

Key Performance Indicator

A measurable value that demonstrates how effectively a company or individual is achieving key business objectives or targets.

Cost Efficiency

The practice of reducing costs while maintaining the desired level of quality or performance in a process, product, or service.