Managers May Intentionally Build Slack into the Budget

question 170

Multiple Choice

Managers may intentionally build slack into the budget

• A)because they are uncertain about the future.
• B)to make their performance appear better.
• C)to acquire the resources they need in the event the organization implements a budget cut.
• D)because all of the above are true.

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Definitions:

Transaction

An exchange or interaction between two or more parties, often used in the context of business or finance.

System

A set of interconnected parts that work together as a whole to achieve a common purpose or to function within a particular environment.

Goals Attained

The achievement of objectives or desired outcomes.

Middle-Range Theory

A theory that connects abstract, broad theories to more specific, empirical observations, applicable to a particular subset of the discipline.