XChapter& Homework I Connect-18SPF21 × - C O ezto.mheducation.com/hm.tpx Check m

Question

XChapter& Homework I Connect-18SPF21 × - C O ezto.mheducation.com/hm.tpx Check my work value: 714 points One potential drawback to Dell's emphasis on operational controls is that O it becomes difficult to set appropriate operating budgets O managers might sacrifice long-term gains to meet short-term profit goals O managers might emphasize direct supervision rather than management by objectives O managers might go over budget without even realizing it O competitors might acquire sensitive data about Del's operations References Multiple Choice 244? Difficulty 2 Medium

Explanation / Answer

a. it becomes difficult to set appropriate operating budgets.

As dell follows the method of Operating margin financial ratio to measure the performance of the company it emphasysis on spreading the financial information in the company with transparency so that every employee can work on reducing the cost and increasing the profits and sales together. This method requires setting operating budget but as the organization is of very large and complex structure and working through this format will require a framework which is flawless and effective it becomes difficult to set such operating budgets.

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