Because people prepare budgets budget figures are often


Because people prepare budgets, budget figures are often biased. Which is true?

A. Sales quantity forecasts tend to be exaggerated to make the sales team look good

B. Production cost estimates tend to be overstated to create wriggle room (budgetary slack)

C. Efficient organizations begin their budget process with last year's budget, and adjust the figures by a certain percentage

D. When senior management sets budget numbers, a more realistic budget can be developed

E. None of the above

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Financial Accounting: Because people prepare budgets budget figures are often
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