An analytical technique used by management to focus attention on the most significant variances and give less attention to the areas where performance is reasonably close to standard is known as:
A)Controllable management.
B)Management by variance.
C)Performance management.
D)Management by objectives.
E)Management by exception.

Question

Quizplus · Accepted Answer

Management by exception focuses on significant variances and gives less attention to areas where performance is reasonably close to standard. This enables management to allocate their resources effectively to address the areas that require attention. Controllable management, management by variance, and performance management are not specific analytical techniques used for this purpose. Management by objectives is a technique used to set and track progress towards specific goals, but it is not necessarily designed to focus on significant variances.

An Analytical Technique Used by Management to Focus Attention on the Most