An Intentional Understatement of Expected Revenues or Overstatement of Expected

question 46

Multiple Choice

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as ________.

• A) benchmarking
• B) appropriation
• C) budgetary slack
• D) variance analysis

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Definitions:

Centralised Authority

An organizational structure where decision-making powers are concentrated at the top levels of management, leading to a more uniform and controlled implementation of policies.

Contingent Design

An approach that adjusts strategies or structures based on specific situations or contexts.

Environmental Forces

External factors such as social, political, legal, and technological changes that can impact an organization's operation.

Cultural Diversity

The presence of a variety of cultural or ethnic groups within a society or organization, contributing to a richer set of values, beliefs, and practices.