Budgetary Slack

Budgetary Slack

The deliberate overestimation of expenses or underestimation of revenue for a project. Budgetary slack may be built into a project so that if expenses are less and/or revenues are more than expected, the project and its managers are viewed favorably by investors and/or executives.
References in periodicals archive ?
So generalisation will be conditional and depend on the type of consultation, the type of employee and the work involved, the significance of budgetary slack and the nature of the reward system--among many other factors.
In this same vein, some suggest that concern for maintaining a favorable reputation leads to lower budgetary slack creation.
Analisando-se o Quadro 3, observa-se que o artigo mais citado foi Participative Budgeting: The Effects of Risk Aversion and Asymmetric Information on Budgetary Slack, do pesquisador Mark S.
Dentre os artigos mais citados encontram-se: Participative Budgeting: The Effects of Risk Aversion and Asymmetric Information on Budgetary Slack, do pesquisador Mark S.
Managing budget emphasis through the explicit design of conditional budgetary slack.
The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation.
As budget analysts, they learned how to ferret out budgetary slack and reduce the size of government, or at least control the rate of growth.
Budgetary slack is the practice of underestimating budgeted revenues, or overestimating budgeted costs, to make budgeted targets more easily achievable.
In addition, we asked which measures the firms take to avoid budgetary slack.