The factor which provides hedge to managers in adverse and unexpected circumstances is known as __________?
Correct answer: D. budgetary slack
- A. target slack
- B. costly slack
- C. influential slack
- D. budgetary slack
Explanation
Budgetary slack is the cushion created when managers underestimate expected revenues or overestimate expected costs, protecting them against adverse conditions. The other forms of slack listed are not standard budgeting terms.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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