Sensitivity analysis: cost cutting A university faced with a deficit reacts by cut¬ ting resource allocations to all faculties and departments by 8%. Do you think this is a good approach to budgeting? Why?

Method of designing the budget How does participation in the budgeting process differ from consultation?

Budget slack What are the pros and cons of building slack into the budget from

(a) the point of view of the employee building in slack and

(b) from a se¬ nior manager's point of view?

Budgeting games What are budgeting games, and why do employees engage in them?

(LO 8)