Department Managers Plan Lower Goals Than Possible in Order to Build

question 44

Multiple Choice

Department managers plan lower goals than possible in order to build in a cushion for unexpected events.This result in:

• A)budgetary slack.
• B)zero-based budgeting.
• C)goal conflict.
• D)flexible budgeting.

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Definitions:

Accumulated Depreciation

The aggregate depreciation charged on a fixed asset since its acquisition.

Loss on Disposal

A financial loss that occurs when an asset is sold for less than its carrying amount on the books.

Gain on Disposal

The profit earned from selling a capital asset for more than its book value.

Straight-line Method

A method of calculating depreciation of an asset, dividing the difference between its cost and salvage value by the total number of years it is expected to be in use.