An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as ________.
A) benchmarking
B) appropriation
C) budgetary slack
D) variance analysis

Question

Quizplus · Accepted Answer

Budgetary slack is the intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation. Benchmarking is a process of comparing one's own performance with the best in the industry. Appropriation refers to budget allocation or distribution of funds. Variance analysis involves comparing actual performance with budgeted performance to identify and analyze the reasons for any deviations.

An Intentional Understatement of Expected Revenues or Overstatement of Expected