The concept that says managers should be evaluated on the basis of revenues and/or expenses they can control is known as the:
A) Management by exception concept.
B) Controllability concept.
C) Responsibility concept.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The controllability concept states that managers should be evaluated based on the revenues and expenses they can control. This concept helps to avoid holding managers responsible for factors that are beyond their control. Choice A, Management by exception, is the concept that suggests that managers should focus on reviewing and only addressing significant deviations from planned results. Choice C, the responsibility concept, is the idea that individuals or departments are accountable for their actions and the results of those actions.

The Concept That Says Managers Should Be Evaluated on the Basis