In relation to this " “The differences between planned performance targets and real performance...

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In relation to this " “The differences between planned performance targets and real performance capabilities is budgetary slack",  I am wondering whether budgetary slack is always a negative thing to  have and therefore I will ask for contribution about the opposite. We  need somebody to explain the circumstances under which slack can be  helpful.

David · Accepted Answer

As you rightly stated that “The difference between planned performance targets and real 
performance capabilities is budgetary slack". However, to elaborate it more, we can state that it is a 
deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.

In relation to this " “The differences between planned performance targets and real performance capabilities is budgetary slack", I am wondering whether budgetary slack is always a negative thing to...

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