Question

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as​ ________.

Answer 1

It is known as the Budgetary Slack
Budgetary Slack is created by managers in order to create a perception that they're performing outstandingly.
By intentionally understate the expected the revenue, it will look like that they're exceeding expectation when the revenue finally came.