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What is budgetary slack

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Question - Stellar Packaging Products is completing its budget process for the coming year. Robin Simmons mentions to Jesse Daniels that it would be advantageous to engage the managers in establishing their own budget targets in order to build morale among the team. Daniels indicated concern that managers would build "slack" into the budget.

What is budgetary "slack"? How can it be avoided if managers set their own budget targets? Is there an alternative way of budgeting to exclude "slack" altogether?

Reference no: EM132012532

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