Management by exception involves:
A)investigating all unfavourable variances
B)investigating all favourable variances
C)investigating only significant variances from budget
D)investigating only unfavourable revenue variances
E)investigating only unfavourable expense variances

Question

Quizplus · Accepted Answer

Management by exception focuses on investigating only significant variances from the budget. This approach allows managers to prioritize their attention on areas that require corrective action, instead of spending time investigating every minor fluctuation. It helps in efficient allocation of resources and managing the organization effectively. Investigating all variances, whether favorable or unfavorable, may not be the best use of resources and can distract from addressing more critical issues.

Management by Exception Involves