Final answer:
The inclusion of "budgetary slack" does not contribute to the success of a budgeting system. Key factors that do support the successful use of a budget include management support, integration of subunit budgets, accurate budgeting, and a sense of ownership by those managing the budget.
Step-by-step explanation:
The successful use of a budgeting system generally involves several key factors that contribute to its effectiveness. These include the acceptance and support by key management people, which ensures that those at the top levels of an organization endorse and advocate for the budgeting process. Integration among subunit budgets within the master budget is also essential, as it guarantees all parts of the organization are aligned and working towards common financial objectives. Furthermore, ensuring that budgets are correct and reasonably accurate is critical to the system's success, as this contributes to the reliability and dependability of the budget for decision-making. Additionally, fostering a sense of ownership by those assigned to carry out the budgeting process is important because it encourages accountability and a feeling of responsibility towards achieving budgeted goals.
However, the inclusion of "budgetary slack" in most budgets does not contribute to the success of a budgeting system. Budgetary slack refers to the intentional overestimation of expenses or underestimation of revenues, creating a cushion that makes it easier to achieve budget targets. While it might reduce pressure on managers, budgetary slack can lead to inefficient resource allocation and does not support the overall goal of financial discipline and alignment with organizational objectives.