A. When a budget is easily achieved, it is said to have budgetary slack in it. When budgetary slack exists either revenues are understated or expenses are overstated to which makes it difficult to properly evaluate the performance.

B. Budgetary slack exists when revenues are understated or expenses are overstated. This is done in order to make it easy for the department, company or individual to meet the budget. The elimination of certain itemsis not budgetary slack, as it is rather making the budget appear better than the actual results will be.

C. Budgetary slack is not a plug number.

D. Budgetary slack exists when revenues are understated or expenses are overstated.