Intermediate Explain the meaning of each of the undemoted terms, comment on their likely impact on cash budgeting and profit planning and suggest ways in which any adverse effects of each may be reduced.

(a) Budgetary slack. (7 marks)

(b) Incremental budgets. (7 marks)

(c) Fixed budgets. (6 marks)

(Total 20 marks)

ACCA Level 2 Cost and Management Accounting II