The principle of exceptions allows managers to focus on correcting variances between
A) standard costs and actual costs
B) variable costs and actual costs
C) competitor's costs and actual costs
D) competitor's costs and standard costs

Question

Quizplus · Accepted Answer

The principle of exceptions is a management tool that involves focusing on correcting the significant variances between actual performance and standard performance. These variances can be in terms of sales, costs, production, or any other operational aspect of a business. Therefore, the principle of exceptions helps managers to improve their ability to monitor and control their operational performance and identify areas that need improvement. In this context, the principle of exceptions primarily focuses on correcting variances between standard costs and actual costs.

The Principle of Exceptions Allows Managers to Focus on Correcting