Which of the following is true about "management by exception"?
A)It requires managers to investigate all favorable and unfavorable variances.
B)It requires the use of variance analysis.
C)It rarely requires the use of variance analysis.
D)It requires managers to calculate standard costs,but ignore actual costs.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

"Management by exception" is a management approach in which managers focus on investigating and addressing significant deviations from expected results or standards. Variance analysis is a tool commonly used in this approach to identify and analyze significant deviations. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect statements.

Which of the Following Is True About "Management by Exception