Management by Exception

question 175

Multiple Choice

Management by exception

• A) causes managers to be buried under voluminous paperwork.
• B) means that all differences will be investigated.
• C) means that only unfavorable differences will be investigated.
• D) means that material differences will be investigated.

---

Definitions:

Economies Of Scope

Cost advantages that enterprises obtain by producing a wide variety of products, rather than specializing in the production of a single product or a very few products.

Economies Of Scale

A situation where the cost per unit of output decreases as the scale of production increases.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Diseconomies Of Scope

A situation where the cost of producing multiple products or services together is higher than producing them separately.