Originally Posted by
Segments
Essentially these deals are shadow budgeting one preferred functional area at the expense of other budgets.
I’m not an accountant but that’s how I see it as well. Not fair to some departments but if you look at it from a corporate view, very usefully. e.g. next shareholders meeting where you have to show reduce in opex for department X but they won’t care about department Y.
In in my company the shareholders never look at sales and business development cost, but want to save every penny on manufacturing operations...