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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
4 / 958 |
Essay's paper body
Management must make periodic evaluations of its cost levels and check if these do the organization any good. Avoidable costs that cause a large dent in profits must therefore be eliminated.
Still in connection to costs, the group further suggests that management assess proposed expenditures based on whether or not these are seen to achieve overall corporate objectives or not...
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Quite obviously, some divisional managers may be compelled to send in budgets that will only benefit their units, but which may prove detrimental to the company at large. And since the gauge of success is mostly profit figures, there is a high probability that such expenditures, their reasonableness notwithstanding, may still be approved by top management in the end...
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