Budgetary Slack Occurs When Managers Intentionally Overstate Expected Revenues or Understate

question 148

True/False

Budgetary slack occurs when managers intentionally overstate expected revenues or understate expected expenses.

---

Definitions:

Electronic Documents

Documents that are generated, stored, transmitted, communicated, or received in digital form.

Legislation

Laws enacted by a legislative body, such as parliament or congress, to govern a specific area of concern.

Binding

Creating a legal obligation or a contract that is enforceable in a court of law.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to services, products, or transactions.