Budgetary slack

Budgetary slack is the practice of underestimating budgeted revenues, or overestimating budgeted costs, to make budgeted targets more easily achievable.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Budgetary slack. The practice of underestimating budgeted revenues, or overestimating budgeted costs, to make budgeted targets more easily achievable.