What is it called when 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 exception
D)Management by decision

Question

Quizplus · Accepted Answer

This is called management by exception, which means that managers only investigate variances that are significant enough to warrant attention. This allows them to focus their time and resources on the most important issues and make efficient decisions.

What Is It Called When Managers Look at the Size