Asked by Ellen Hsieh on Jul 12, 2024
Verified
Management by exception means that a manager's attention is directed toward those parts of the organization where variances between actual and budget are significant.
Management By Exception
A management system in which standards are set for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions.
Actual
The real, measured or observed value of a quantity or cost, as opposed to estimated or budgeted figures.
Budget
A quantitative plan for acquiring and using resources over a specified time period.
- Comprehend the objective and methodology for determining labor rate and efficiency discrepancies.
- Analyze the role of standard costing in the facilitation of managerial decision-making and control processes.
Verified Answer
RS
Ramona ScalesJul 19, 2024
Final Answer :
True
Explanation :
Management by exception is a management strategy where focus is given to areas showing significant deviations from budgeted or standard performance, indicating the need for managerial intervention or attention.
Learning Objectives
- Comprehend the objective and methodology for determining labor rate and efficiency discrepancies.
- Analyze the role of standard costing in the facilitation of managerial decision-making and control processes.