Department managers plan lower goals than possible in order to build in a cushion for unexpected events.This result in:
A)budgetary slack.
B)zero-based budgeting.
C)goal conflict.
D)flexible budgeting.

Question

Quizplus · Accepted Answer

This behavior of planning lower goals than possible in order to have a cushion for unexpected events is known as budgetary slack. It is a common practice among department managers as they believe it provides them with flexibility to deal with unforeseen circumstances without negatively impacting their performance evaluation.

Department Managers Plan Lower Goals Than Possible in Order to Build