Which Statement Is True Concerning Management by Exception

question 22

Multiple Choice

Which statement is true concerning management by exception?

• A)It is most effective on uncontrollable costs.
• B)It enables management to focus on problem areas.
• C)It allows managers to decide when they want to use budget guidelines.
• D)It allows managers to concentrate on the uncontrollable costs.

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Definitions:

Noncash Assets

Assets owned by a business that are not in the form of cash but can be converted into cash within a year, including inventory, real estate, and investments.

Safe Cash Payments

Transactions made in cash that are secure and minimize the risk of theft or loss.

Liquidation Expenses

Costs associated with winding up a company's operations, selling off assets, and paying off creditors in the event of liquidation or bankruptcy.

Profits and Losses

The financial results of a company's operations, indicating the net money made or lost within a specific period.