Explain why managers might want to build slack into a budget.  

 2.What role does the budgeting activity play in managerial compensation and performance evaluation? 

 

 3.Why will there frequently be a difference between the budgeted cost of material in the material purchases budget and the budgeted cash disbursement for material in the cash budget? 

 

 4.Explain why different types of organizations will have different sets of budgets. 

 

 hand, the need for a production budget in a manufacturing organization is obvious. Likewise, governmental organizations will have budgets that are different than private organizations. 

 

 5.Why have many managers in recent years moved toward emphasizing employee participation in the budgeting process rather than simply imposing the budget on the employees?