Vidyalelo
Commerce · Q598

Costing

Graduate and Post Graduate · Commerce · question 598

Q598

Factor which provides hedge to managers in adverse and unexpected circumstances is known as

A.
budgetary slack
Answer
B.
costly slack
C.
influential slack
D.
target slack

Answer: Option A

Solution

Answer: Option A
Solution:
Factor which provides hedge to managers in adverse and unexpected circumstances is known as budgetary slack. Budgetary slack is the deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.