When Oscar explains to Michael about the budget surplus using a lemonade stand analogy, he talks about the budget as a resource “available for spending”. I always looked at budget as being a target for your sales and contribution margin, which I understand are far more important… How real is it on an accounting basis?
For those who do not know which skit I’m talking about, https://youtu.be/dWfrMMNeK2k
Edit: The Office’s.
In: 2
Accounting is there just to provide the numbers and ensure these numbers match reality. Then, it’s the business’s duty to figure out what to do with that information. I’ve seen managers being able to justify org expansions and increasing the budget based on a saving from this years budget. In ELi5 terms – look at how good I can run this organisation, if you give me more money I’ll be able to improve things even more.
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