Management by exception is used to determine which variances to investigate.

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Management by exception involves monitoring and analyzing deviations from established plans or standards, and taking action only when those deviations exceed a certain threshold or level of importance. This approach allows managers to focus their attention and resources on the most significant variances, rather than getting bogged down in minutia or routine deviations. Therefore, it is used to determine which variances to investigate.

Management by Exception Is Used to Determine Which Variances to Investigate