Suppose That the Departmental Manager Deliberately Underestimates the Level of Sales

question 32

Multiple Choice

Suppose that the departmental manager deliberately underestimates the level of sales activity by 10 000 units. What is this practice called?

• A) Budgetary participation
• B) Appropriate caution
• C) Budgetary slack
• D) Allowance for uncertainty

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Definitions:

Ecological Economists

Experts who study the relationship between ecological systems and economic systems, often focusing on sustainability and environmental impacts of economic decisions.

Environmental Economists

Experts who study the economic impacts of environmental policies and the cost-benefit analyses of preserving or degrading the environment.

Neoclassical Economics

An economic theory that focuses on supply, demand, and the price mechanism as the driving forces behind production, distribution, and consumption of goods and services.

Economic Systems

Organized ways in which countries manage their resources and distribute goods and services within their societies.