Page 300 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 13

Test your understanding 1

The term ‘budget slack’ refers to:

A the extended lead time between the preparation of the functional budgets
and the master budget

B the difference between the budgeted output and the breakeven output

C the additional capacity available which can be budgeted for

D the deliberate over-estimation of costs or under-estimation of revenues in
a budget

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