-Budgetary slack is more likely to occur when an organization uses a \"top down\
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Question
-Budgetary slack is more likely to occur when an organization uses a "top down" approach to develop its budgets. True or False
-A benefit of participative budgeting is more accurate budgetary estimates.True or False
-The sales budget is classified as a financial budget within the master budget.True or False
-After a company prepares its direct labor budget, it prepares a production budget based on labor hours available.True or False
-The cash budget contains sections for cash receipts, cash disbursements, and financing.True or False
Explanation / Answer
ANSWER
Budgetary slack is more likely to occur when an organization uses a "top down" approach to develop its budgets.
- The given statement is FALSE.
Budgetary slack- it occurs when a manager submits a budget that is very easy to attain.
Top-down budgeting approach is the approach when top management sets the budget and submits to the lower levels of the organisation. Top level imposes that on lower levels of the organisation.
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