The term management by exception refers to investigating ________.
A) significant variances
B) only unfavorable variances
C) all variances
D) all favorable variances

Question

Quizplus · Accepted Answer

Management by exception is a concept that suggests managers should only investigate variances that are significant or exceptional, rather than all variances. These significant variances are typically unfavorable, but may include favorable variances if they are large enough to warrant investigation. Therefore, option A, significant variances, would be the best choice.

The Term Management by Exception Refers to Investigating ________