Management by exception directs management's attention to important differences between actual and budgeted amounts.

Question

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This statement is true. Management by exception is a management principle that directs attention to significant variances between actual performance and budgeted or planned performance. The idea is that exceptions, or significant deviations from what was planned, require attention and intervention from management to bring performance back on track.

Management by Exception Directs Management's Attention to Important Differences Between