Which of the Following Is True of the Exception Principle

question 74

Multiple Choice

Which of the following is true of the exception principle?

• A) The exception principle is beneficial when it helps supervisors manage their time wisely and motivate employees.
• B) According to the exception principle, supervisors should take action only when the variance is measurable.
• C) The exception principle is applied by the top managers during strategic planning when they set objectives for an organization as a whole.
• D) According to the exception principle, supervisors should avoid comparing actual performance with standards set by them.

---

Definitions:

Compounded Annually

Interest calculated once per year on the initial principal, including all interest from previous periods.

Compounded Monthly

An interest calculation method where interest is added to the principal balance on a monthly basis, with each month's interest calculation based on the principal plus all previously compounded interest.

Insurance Premium

The amount of money an individual or business must pay for an insurance policy.

Face Value

(1) The amount paid at maturity of a Treasury bill or commercial paper. (2) The initial principal amount of a mortgage.