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 practice is called management by exception. It involves focusing on the significant variances that are outside of the expected range, rather than analyzing every single variance, in order to prioritize and allocate resources effectively.

What Is It Called When Managers Look at the Size