7 key issues that should be covered in partnership agreement

Budgetary slack concept and its application in responsibility accounting.

Budgetary slack is the process by which managers seeks to obtain budget targets that can easily be achieved by understating revenues and/or overstating costs.

BUDGETARY SLACK CONCEPT AND ITS APPLICATION IN RESPONSIBILITY ACCOUNTING

The following are ways in which budgetary slack arise:

manager avoid risky but profitable projects



managers negotiate for lower targets

managers dispute performance assessment results… Read the rest