eli5 How do companies spend their exact budget without going too over/under?

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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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Anonymous 0 Comments

They don’t. They go over all the time and the manager in charge has to explain why they went over, gives a good and reasonable explanation, or gets disciplined.

Looking like you’ll go over the wages budget? No problem, a little bit of wage theft is common place.

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