Question

Budget slack is:

A. sometimes called padding or cushion.
B. the result of budget estimates submitted that are slightly higher than what the costs are really expected to be.
C. an allowance for contingencies built into a budget.
D. all of these.

Answer 1

Budget slack is the intentional overestimation of budget estimates submitted to create a buffer or allowance for contingencies. Option D.

Step-by-step explanation:

The correct answer is D. All of these. Budget slack refers to the intentional overestimation of budget estimates submitted, often called padding or cushion, in order to create a buffer or allowance for contingencies.

This padding allows for flexibility in case the costs end up being higher than expected. For example, a project manager might include budget slack in their project budget to account for unforeseen expenses or unexpected delays.

So Option D.