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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Spend down! If your annual budget is $500,000 and at the end of the fiscal year you’ve spent $450,000, that’s where each department is gonna get its new office chairs or *totally necessary* work knives or what-have-you to ensure you don’t come in under budget.
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