Question

Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of _____.

Answer 1

Answer: Budgetary slack

Step-by-step explanation:

The budgetary slack is one of the type of situation occur in an organization when the manager is reducing the overall revenue of the budget and expand the budget expenses in the company.

It is also known as the long range planning process for achieving the given production line.

According to the given scenario, Harold is guilty due to the budgetary slack as Harold is the manager of the food and the beverage firm and handles the packaging department in an organization and he overstating the actual requirement in his packaging department.

Therefore, Budgetary slack is the correct answer.