Managers who properly apply the concept of "management by exception" will:
A) investigate only unfavorable variances.
B) investigate only favorable variances.
C) always investigate unfavorable and favorable variances regardless of size.
D) investigate only variances of a certain size or scope.

Question

Quizplus · Accepted Answer

Managers who use "management by exception" will investigate only variances that fall outside a predetermined range or threshold. This means that they will focus their attention only on those items that require action or attention, and will not waste time investigating minor or insignificant variances.

Managers Who Properly Apply the Concept of "Management by Exception