Ask Question
BusinessBusiness
4 July, 23:35

If a manager builds slack into a budget, how would that manager handle estimates of revenues and expenses? Revenues Expenses A. Underestimate Underestimate B. Underestimate Overestimate C. Overestimate Underestimate D. Overestimate Overestimate E. Estimate Correctly Estimate Correctly

+3
Answers (1)
  1. 5 July, 02:34
    0
    The correct answer is letter "D": Revenues (Overestimate); Expenses (Overestimate).

    Explanation:

    A budget slack is a monetary difference in favor of the company planned and created by management to ensure the firm's performance will hit the projected budget. Budget slacks are created when managers overestimate their revenues and expenses. Though, in the long term, this type of practice will only show mediocrity in the business that could be reflected in the stock price of the organization.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If a manager builds slack into a budget, how would that manager handle estimates of revenues and expenses? Revenues Expenses A. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts.
Answers (1)
Marie has a weekly budget of $24, which she likes to spend on magazines and pies. if the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
Answers (1)
One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The bondholder is owed a coupon payment of $50, and the stockholder is promised a dividend of $50.
Answers (1)
A company's flexible budget for 24,000 units of production showed per unit contribution margin of $2.50 and fixed costs, $31,200. The operating income expected if the company produces and sells 29,000 units is:
Answers (1)
A decision is made at the margin when each alternative considers A) a different trade-off than the others. B) where the most costly alternative will be. C) what the "all or nothing" alternative will be.
Answers (2)
New Questions in Business
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900.
Answers (1)
The following data for the telephone company pertain to the production of 450 rolls of telephone wire during June. Selected items are omitted because the costing records were lost in a windstorm.
Answers (1)
Grant's personal residence was completely destroyed by fire. He was insured for 100% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income before considering the casualty item of $30,000.
Answers (1)
If total liabilities increase by $5,000 then A. assets decrease by $5,000. B. stockholders' equity increase by $5,000. C. assets increase by $5,000, or stockholders' equity decrease by $5,000. D.
Answers (1)
J. ross and sons inc. j. ross and sons inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity.
Answers (1)
Home » Business » If a manager builds slack into a budget, how would that manager handle estimates of revenues and expenses? Revenues Expenses A. Underestimate Underestimate B. Underestimate Overestimate C. Overestimate Underestimate D. Overestimate Overestimate E.
Sign Up Forgot Password?