When using management by exception,which of the following variances would not affect the production manager?
A) direct materials efficiency
B) variable overhead efficiency
C) direct labor cost
D) direct labor efficiency

Question

Quizplus · Accepted Answer

Direct labor cost would not affect the production manager in a management by exception approach because it is a fixed cost that is predictable and easily budgeted for. The other variances listed are related to variable costs and/or production efficiency, which are more likely to require management attention and action.

When Using Management by Exception,which of the Following Variances Would