Nextel Communications uses management by exception.Which differences between planned and actual results will it investigate?
A)those that are material and non-controllable
B)those that are controllable and non-controllable
C)those that are material and controllable
D)All differences should be investigated.

Question

Quizplus · Accepted Answer

Nextel Communications uses management by exception, which means it focuses on investigating only significant variances between planned and actual results. Therefore, it will investigate differences that are both material (significant) and controllable. Non-controllable differences are generally not investigated as they are outside the influence of the management team. Therefore, option C is the best choice. Options A and B are incorrect because they include non-controllable differences, which are not relevant for investigation. Option D is too broad and unrealistic, as it is not feasible to investigate all differences between planned and actual results.

Nextel Communications Uses Management by Exception