Consider the Following Statements About Budgetary Slack

question 17

Multiple Choice

Consider the following statements about budgetary slack:
I. Managers build slack into a budget so that they stand a greater chance of receiving favorable performance evaluations.
II. Budgetary slack is used by managers to guard against uncertainty and unforeseen events.
III. Budgetary slack is used by managers to guard against dollar cuts by top management in the resource allocation process.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) I and II.
• D) II and III.
• E) I, II, and III.

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Definitions:

Reflecting Questions

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The level of acceptance and intimacy between individuals in a society, influencing their interactions and relationships.

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The physical space individuals prefer to maintain between themselves and others to feel comfortable.

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The process and practices of creating and sharing information within and outside of an organization.