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) Performance management.
B) Management by variance.
C) Management by objectives.
D) Controllable management.
E) Management by exception.

Question

Quizplus · Accepted Answer

Management by exception is a technique used by management to focus on significant variances and give less attention to areas where performance is reasonably close to the standard. It allows management to identify areas that require action and resources, therefore increasing efficiency and effectiveness. This technique involves establishing thresholds or benchmarks, which helps management to prioritize the allocation of resources and corrective actions. Therefore, E is the best answer.

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