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Slack into the budget:

Which of the following groups is most likely to introduce slack into the budget: A. Board of Directors B. Top Management C. Budget Committee D. Middle and Lower management

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Question added by Anayatullah Tahir , Accounting Consultant , Various
Date Posted: 2014/03/16
Mokbel Abuayash CMA
by Mokbel Abuayash CMA , Holding Finance Manager , Al Hattab Holding Group

D. Middle and Lower management.

Sameer Khan
by Sameer Khan , Financial Accountant , Centro Salama by Rotana

Top management.

But it's not a rule of thumb, scenarios changes according to the situations,

like when;

  • Llabour union strikes for higher wages then the pressure group is from the lower tier of the management
  • If the top management squeezes the comapny's financial according to their benefits and fabricate the ratios to reflect their false performance to get higher bonuses and shinning fringes.

Samar Saad CMA
by Samar Saad CMA , retail shift leader , vodafone

Top management as they wants to under estimate revenues or over estimate expenses