Padding the budget means overestimating costs and$/$or underestimating revenue. For

example, if Helen is the manager of the sales department. She can submit a lower estimate for

sales knowing that if the sales exceed budget she will appear in a favourable light to senior

management.

The difference between the padded estimate and a realistic estimate is known as budgetary

slack. For example, if Jerome Khan believes that a realistic estimate for administrative salaries

for the year is $$160000$ but he submits $$180000$ to the budget committee, he has built

$$20,000$ slack into the budget.

Required

Describe at least one $(1)$ problem that padding and the resulting budgetary slack can create

$($you may use examples in your description of the problem$)$