Multiple Choice
Misuse of budgets can lead to incentives to cheat and lie.Cheating and lying may take the form of ________.
A) making short-run decisions to increase profits that are not in the company's best long-run interests
B) budgetary slack
C) decreasing profits when actual profits significantly exceed the profit target
D) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q40: The McGraw Company has the following
Q41: The final output of the operating budget
Q42: Santelle Company expects August sales to be
Q43: Misalignment between the _ stressed in budgets
Q44: Wininger Company is preparing a cash
Q46: The first step in preparing the financial
Q47: A major drawback of using historical results
Q48: Important factors used to forecast sales for
Q49: The financial budget is used by managers
Q50: In a master budget,the schedule of cash