All of the Following Statements Are Correct About Management by Exception

question 50

Multiple Choice

All of the following statements are correct about management by exception except it

• A) enables top management to focus on problem areas that need attention.
• B) means that management has to investigate every budget difference.
• C) requires that there must be some guidelines for identifying an exception.
• D) means that top management's review of a budget report is focused primarily on differences between actual results and planned objectives.

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Definitions:

Equipment

Tangible property used in the operation of a business, not intended for sale, such as machinery, computers, and tools.

Natural Resources

Assets that are found in nature and are used for economic gain, such as oil, forests, minerals, or water.

Depletion Expense

An accounting approach for allocating the cost of extracting natural resources from the earth over the period of their extraction.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.