Vidyalelo
Commerce · Q577

Costing

Graduate and Post Graduate · Commerce · question 577

Q577

Practice, which makes target more achievable by underestimating revenues or overestimating cost is called

A.
cost slack
B.
target slack
C.
budgetary slack
Answer
D.
revenue slack

Answer: Option C

Solution

Answer: Option C
Solution:
Practice, which makes target more achievable by underestimating revenues or overestimating cost is called budgetary slack. Budgetary slack is the deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.