Question

"Budgetary slack" occurs when:

A. Employees refuse to adhere to budgeted plans and operations.
B. The budget is so difficult to meet that employees slack-off from work.
C. An authoritative, or imposed, budgeting process is used.
D. To "meet" budget objectives, employees ask for resources in excess of what they need.
E. Employees ask for fewer resources than they need, in order to continuously improve.

Answer 1

Budgetary slack occurs when employees ask for fewer resources than they need, in order to continuously improve.

Step-by-step explanation:

Budgetary slack occurs when employees ask for fewer resources than they need, in order to continuously improve. It is a deliberate overestimation of expenses or underestimation of revenues in a budget to create a cushion. By intentionally underestimating their resource needs, employees can potentially secure additional resources if necessary or demonstrate cost-cutting measures.