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

1.15K views

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?

In: 485

34 Answers

Anonymous 0 Comments

My grandfather was in the military and talked about how his unit would go spend every penny before the end of the fiscal year, so it wouldn’t get cut the next year. He worked in hospitals, so they’d go buy new equipment, or one example he gave, they went and bought a shitload of vacuums for housekeeping. Anything to spend the money.

You are viewing 1 out of 34 answers, click here to view all answers.