1 ge 2: ge 3: 4: Which of the following is true of budgetary slack? It occurs when top management simply obtains formal acceptance of the budget from subordinate managers without seeking real input It reflects operating realities such as actual level of activity, seasonal variations. and general economic trends. Budgetary slack occurs when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers. 5: Budgetary slack occurs when a manager deliberately underestimates revenues or overestimates costs in order to make budgeted expectations more easily achievable in the future.