Management by exception directs the management's attention to important differences between the actual and the budgeted amounts.

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Management by exception is a technique that involves focusing on significant variances or deviations from the planned or expected results. The approach allows managers to prioritize their attention and resources on issues that require action or intervention, rather than wasting time and effort on minor discrepancies. By identifying and investigating exceptions or outliers, managers can gain insights into the underlying causes and make informed decisions to improve performance, reduce costs, or achieve goals. Therefore, management by exception helps to achieve better control, accountability, and efficiency in organizational processes.

Management by Exception Directs the Management's Attention to Important Differences