Which of the following is true about budgetary slack? A) Budgetary slack fails t

Question

Which of the following is true about budgetary slack?

A) Budgetary slack fails to provide managers with a hedge against unexpected adverse

circumstances. B) Budgeting is most effective when lower-level managers actively participate and

meaningfully engage in the budgeting process. C) Rolling budgets is another approach to reduce budgetary slack. D) One approach to dealing with budgetary slack is to avoid benchmark data when setting the

budget. E) Subordinates never "play games" and build in budgetary slack.

Explanation / Answer

Solution:- C) Rolling budgets is another approach to reduce budgetary slack.

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