Submitted by angrybird7677 t3_zzswm0 in explainlikeimfive
HuntedWolf t1_j2ep6s1 wrote
Reply to comment by cleanscotch in ELI5: Why do companies require annual budget be spent 100%? by angrybird7677
What happens when they hit revenue goals without spending budget?
KlutzyCarteBlanche t1_j2eqg0l wrote
Then you get a smaller budget next year and the extra budget you had this year is used to cover other teams who ran over budget
WaterHaven t1_j2fntgg wrote
My worst job ever was mediating management meetings where they'd argue about why expenses were put under their department.
PretzelsThirst t1_j2fqxud wrote
Then you are showing that you can hit the goal with a smaller budget, and will receive a smaller budget next year.
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