The correct answer is A. budgetary slack.
Budgetary slack is a deliberate underestimation of revenue or an overestimation of expenses in order to create a buffer in the budget. This can be done by managers in order to protect themselves from being held accountable for unexpected costs or shortfalls.
Budgetary slack can be a useful tool for managers, but it can also lead to problems if it is not managed carefully. If managers create too much slack, it can lead to waste and inefficiency. Additionally, if slack is not used wisely, it can lead to budget overruns and other problems.
There are a number of ways to manage budgetary slack. One way is to set realistic budgets that are based on accurate forecasts. Another way is to create a process for monitoring and controlling budgets. Additionally, managers can be held accountable for their budgets and for using slack wisely.
Budgetary slack is a complex issue, and there is no one-size-fits-all solution. However, by understanding the potential benefits and risks of budgetary slack, managers can use it effectively to manage their organizations.
Here are brief explanations of each option:
- Budgetary slack: A deliberate underestimation of revenue or an overestimation of expenses in order to create a buffer in the budget.
- Costly slack: Slack that is created by inefficient or wasteful practices.
- Influential slack: Slack that is created by managers who have a lot of power and influence.
- Target slack: Slack that is created by managers who are trying to meet specific targets.