So most companies have a big corporate office and a bunch of regional offices that they allocate money to, I get that. Let’s say a given office gets a $500,000/yr operating budget (just throwing out a random number). How do they spend exactly $500,000? Because they obviously don’t want to go over budget but they don’t want to have a surplus and lose $ next year. So is there wiggle room? Would they spend $499,995 or something?
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lot of good answers in here, i ‘d like to add budgets get very granular. every department, every salary, every type of expense, they all have “accounts” and thus can be monitored easily on a monthly or quarterly basis (some places even weekly).
so if you can see it, due to granularity, you can act accordingly to be within budget.
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