Most people do not understand or care about the value of declining budgets. Declining budgets are an intricate part of managing the business. With out them you are are running the business blind.
Declining budgets allow you to know exactly where you are at any point in the period and make adjustments according to your sales. If your sales are trending down from you budgeted sales, then you can adjust you declining budget as well. Also, if you have any unexpected costs in a particular category, you can make adjustments to the other categories so you can still come out with your overall projected budget.
