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
I think you’re conflating an operational budget with a sales budget. The budget they refer to is how much it costs to operate the Office independent of sales. This is often a fixed number. If you don’t spend all the money you are assigned then your budget for the following year is reduced, as you’ve demonstrated you can operate for less than forecast. Government departments have this problem often and as such will go on wild spending sprees at the end of their fiscal years.
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