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Answer :
i believe it is called "cost overrun"
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Final answer:
Budgetary slack describes the situation where a manager overestimates expenses or underestimates revenue in the budget to enhance their performance. This practice distorts the financial picture of the organization and may lead to wasteful spending.
Explanation:
The term that describes the situation where a manager intentionally overbudgets expenses or underbudgets revenue is known as budgetary slack. This is a practice used by managers to make their performance appear better than it is by creating a buffer in the budget. By overestimating expenses and underestimating revenue, they can easily exceed their budget predictions. An example of this could be a manager estimating office supplies at $1000 a month when, in reality, they only cost $700.
However, this practice can be harmful as it could distort the financial picture of the organization and potentially lead to wasteful spending. It's important to note that a fiscal year starts on October 1 and ends on September 30 of the next year, and the difference between the tax revenue collected and spending during this time is what's known as an annual budget deficit or surplus.
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