Lander Foods applied management by exception.Which of the following would have occurred?
A)The company's managers prepared a flexible budget.
B)Management created a poorly conceived budget.
C)Management forecasted its sales for the budget period.
D)Management investigated all significant variances.

Question

Quizplus · Accepted Answer

Management by exception involves investigating significant variances from the budget or expected performance. This means that the company's managers would have monitored actual results and investigated significant deviations from the budgeted figures. The other choices, such as creating a flexible budget or forecasting sales, are not necessarily indicative of management by exception.

Lander Foods Applied Management by Exception