Budgetary Slack Definition Example Advantages Disadvantages
What is Budgetary Slack? Example of Budgetary Slack For example, the manager of the company responsible for preparing the budget estimates that for the next financial year, the company’s sales would be $ 80,000. Still, he shows the budgeted sales to be $ 70,000 for the year by deliberately reducing the budgeted sales by $ 10,000. It was done because, in the past years, the company’s top management was not satisfied with the sales performance of the company as there was a vast difference between the budgeted sales they were checking from the past budget of the company and the actual sales during that period....