One Advantage of the Management- By- Exception Approach Is That

question 57

Multiple Choice

One advantage of the management- by- exception approach is that it:

• A) takes advantage of computerization
• B) allows managers to ignore day- to- day concerns so they can focus on crises
• C) frees managers from needless concern over operations that are running smoothly
• D) allows managers to ignore aspects of the business outside their area of expertise

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Definitions:

Overhead Cost

Overhead cost refers to ongoing business expenses not directly tied to creating a product or service, such as rent, utilities, and insurance.

Work in Process

Represents goods that are in the process of being manufactured but are not yet complete.

Indirect Materials

Materials used in the production process that do not become an integral part of the final product and are not directly traceable to specific goods.

Nonmanufacturing Costs

Expenses not related to the production of goods, such as selling, administrative, and financial costs.