'Budgetary slack' can be referred to as dysfunctional behaviour where managers deliberately understate or overstate elements of a budget such as sales or costs in order to achieve budget.

Question

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Budgetary slack occurs when managers intentionally misrepresent budgeted figures in order to increase the chances of meeting or exceeding the budget. This can be considered a form of dysfunctional behavior as it undermines the accuracy and reliability of the budget, and can have negative consequences for the organization as a whole.

'Budgetary Slack' Can Be Referred to as Dysfunctional Behaviour Where