Management by Exception Would Dictate That the Manager Investigate Which

question 52

Multiple Choice

Management by exception would dictate that the manager investigate which of the following variances?

• A)Variances which are less than a certain dollar amount or percentage
• B)Variances which are greater than a certain dollar amount or percentage
• C)All unfavorable variances
• D)All favorable and unfavorable variances

---

Definitions:

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.

Net Present Value Method

A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.

Cash Inflows

Cash inflows refer to the movement of money into a company's accounts from various sources, including sales, financing, or investment.