Investopedia

Continue to Site »

Budgetary Slack

Filed Under » , , ,
Dictionary Says

Definition of 'Budgetary Slack'

The intentional allowance for extra expenditures in a future cash flow. Budgetary slack can take one of two forms: It can either underestimate the amount of income or revenue that will come in over a given amount of time, or overestimate the expenses that are to be paid out over the same time period.

Investopedia Says

Investopedia explains 'Budgetary Slack'

Budgetary slack is generally frowned upon by most accountants. This strategy effectively prevents budgets from working properly. It can even be unethical in some cases, such as when companies intentionally distort these figures in order to achieve certain accounting objectives.

Articles Of Interest

  1.

    Bloated Budget? How To Trim The Fat

    Blood, sweat and tears should belong in the gym, but your money deserves some training time too.

  2. 5 Ways To Stretch Your Retirement Budget

    Living comfortably can be easy if you follow a simple plan.

  3. 6 Months To A Better Budget

    Can you have perfect abs in just six minutes a day? Maybe not, but you can have a rock-solid budget in six months.

  4. The Beauty Of Budgeting

    Make it to the end of the month, before you run out of money.

  5. Are You Living Too Close To The Edge?

    If a missed paycheck will make your finances cave in, you must learn how to make proper supports.

  6. Budgeting While You're In College

    Test your money management skills as you work your way through university.

  7. Run Your Finances Like A Business

    Think of yourself as your own little company. To make it run smoothly, you need to take a look at your books.

  8. Six Steps To A Better Business Budget

    This easy but essential process helps owners ensure that their businesses can stay afloat.

  9. How Budgeting Works For Companies

    Learn how to break down and understand a corporate budget.

  10. Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center