Budgetary Slack Is Automatically Included in the Revenue Budget

question 69

True/False

Budgetary slack is automatically included in the revenue budget.

---

Definitions:

Inventory Management

The practice of ordering, storing, tracking, and controlling inventory to ensure the availability of products while minimizing costs and storage space.

Stock-Out

A situation where inventory is exhausted and unavailable for sale or use, often leading to lost sales or production delays.

Collection Period

The average number of days it takes a company to collect payments owed by its customers for sales made on credit.

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a future date.