Management by Exception Is a Practice Whereby Managers Focus More

question 58

Multiple Choice

Management by exception is a practice whereby managers focus more closely on ________.

• A) variances in the larger departments
• B) areas not operating as anticipated and less closely on areas that are operating as anticipated
• C) activity-based budgeting
• D) unfavorable variances

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Definitions:

Financial Accounting

Financial accounting is the branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.

Deficit

A situation where expenses exceed revenues, or liabilities exceed assets.

Retained Earnings

Net earnings not distributed as dividends but reinvested back into the company or kept as a reserve for future use.

Net Loss

The amount by which a company's expenses exceed its revenues over a specific period, indicating a decrease in net assets.