Budgetary Slack
As budgetary slack is not directly observable,
follow prior survey studies, this study employs two
survey questions to measure budgetary slack. The
questions are (1) çAnnual budget targets induce
high productivity in your business unité and (2)
çBudget targets require costs to be managed
carefully in your business unité, both of which are reverse coded. Each respondent is asked to specify
the percentage of, rather than the five›or seven›point
Likert scale, the level of their perceptions of the
achievability of their annual earnings targ