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Discuss Management by Objectives

question 37

Essay

Discuss management by objectives. How is it used? What are its advantages and disadvantages?


Definitions:

Variance

The difference between planned or budgeted figures and actual figures, used in performance analysis and management.

Financial Reporting Systems

Systems used by organizations to manage and process financial data, and to produce reports that accurately depict business performance and financial position.

Principle of Exceptions

A management principle where focus is directed towards cases that deviate significantly from the norm, allowing managers to concentrate on significant issues rather than routine matters.

Standard Costs

Predetermined or estimated costs to manufacture a product or provide a service, used in budgeting and measuring performance.

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