When managers use the process called 'management by exception':
A) they take action when there is a significant variance between planned and actual results.
B) they take action when there is a variance of any size or amount between planned and actual results.
C) they are allowed to use standard costs rather than actual costs on financial statements issued to decision makers.
D) they are not required to compute the standard cost of making a product.

Question

Quizplus · Accepted Answer

Management by exception is a process where managers focus their attention on significant variances between planned and actual results, and take action to address them. This approach allows managers to prioritize their efforts and resources where they are most needed, rather than getting bogged down in minor deviations from the plan.

When Managers Use the Process Called 'Management by Exception