Managers May Intentionally Build Slack into the Budget

question 164

Multiple Choice

Managers may intentionally build slack into the budget

• A)because of uncertainty about the future.
• B)to make their performance look better.
• C)to have the resources they need in the event of budget cuts.
• D)because of all of the above.

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Definitions:

Real Terms

Adjusting financial figures to account for inflation, to reflect the actual purchasing power.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, and jurisdiction.

Deflation

A decrease in the general price level of goods and services, often indicating an economy in decline.

Farmers

Individuals engaged in agricultural activities, aimed at producing food and other crops.