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A company pays its production manager an annual bonus based on how well the manager performs against the production departments annual budgets. The production manager
A company pays its production manager an annual bonus based on how well the manager performs against the production departments annual budgets. The production manager has been overestimating budgeted costs the past few years in order to obtain a higher bonus payment. The production managers actions arebestdescribed as
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Setting budgeted performance.
Motivating employee effort.
Building budgetary slack.
Balancing production costs over long periods of time.
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