Managers May Intentionally Build Slack into the Budget

question 164

Multiple Choice

Managers may intentionally build slack into the budget

• A)because of uncertainty about the future.
• B)to make their performance look better.
• C)to have the resources they need in the event of budget cuts.
• D)because of all of the above.

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Definitions:

Payments

Transactions or transfers of money from one person or entity to another.

Duration

A metric indicating how the price of a bond or another type of debt instrument reacts to interest rate fluctuations, usually denoted in years.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Interest Sensitivity

The degree to which the price of a financial asset responds to changes in interest rates.