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Which TWO of the following actions taken during the budgetary planning process will result in the creation of budgetary slack?
Suggested Answer: A, C
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14 comments · newest first
PH
Phuong
10 months ago
Underestimating revenues is definitely a way to create slack.
HA
Haydee
10 months ago
Wait, can overestimating profits really lead to slack?
LA
Layla
10 months ago
Totally agree, it's a common tactic!
BE
Belen
11 months ago
I think underestimating costs could also be a factor.
JE
Jettie
11 months ago
Overestimating costs and revenues creates slack.
MA
Madonna
11 months ago
I feel like overestimating profit is definitely a way to create slack, but I need to double-check my notes on the others.
FR
Franchesca
11 months ago
I’m a bit confused; I thought overestimating revenues might help, but now I’m not so certain.
RU
Rupert
12 months ago
I remember practicing a question like this, and I think underestimating revenues could also lead to slack.
AL
Alva
12 months ago
I think overestimating costs might create budgetary slack, but I'm not sure about the second option.
LI
Lizette
12 months ago
This is a good question to test our understanding of budgetary slack. The key is identifying the actions that would intentionally inflate the budget beyond what's needed. I'm pretty sure overestimating costs and underestimating revenues are the right answers here.
RA
Raul
1 year ago
I remember discussing budgetary slack in class, but I'm drawing a blank on the details right now. I'll have to carefully read through the answer choices and try to reason it out.
VA
Vashti
1 year ago
Okay, let me think this through. Overestimating costs and underestimating revenues would both lead to a larger budget than necessary, creating slack. I'll make sure to select those two options.
TO
Tonja
1 year ago
Hmm, I'm not entirely sure about this one. I know budgetary slack has to do with intentionally inflating costs or deflating revenues, but I'm not confident which specific actions would cause that.
LO
Louann
1 year ago
This question seems straightforward. I think overestimating costs and underestimating revenues would both create budgetary slack.