With ________, managers look at the size of the variances between actual results and budgeted amounts in order to determine which variances should be investigated.
A)management by variance
B)management by budget
C)management by decision
D)management by exception

Question

Quizplus · Accepted Answer

Management by exception is the approach where managers focus their attention on investigating and analyzing significant variances between actual results and budgeted amounts. This approach helps in identifying the areas where immediate corrective actions are required to bring the actual results back in line with the budgeted amounts. Therefore, D is the correct answer. Management by variance is not a commonly used term and is not relevant in this context. Management by budget and management by decision are not relevant to the given scenario as they do not pertain to identifying significant variances.

With ________, Managers Look at the Size of the Variances