The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.

The principle of exceptions assumes that most activities within a company will run smoothly and meet their standard costs. However, when there are variances between standard costs and actual costs, managers should focus on investigating and correcting the exceptions (outliers or deviations from the norm) rather than spending time on activities that are within the expected range. This approach helps managers prioritize their efforts and resources to improve profitability and efficiency.