Which of the Following Statements Is True Regarding 'Management by Exception

question 41

Multiple Choice

Which of the following statements is true regarding 'management by exception'?

• A) It is rarely used in variance analysis.
• B) It forces managers to investigate all variances,regardless of size.
• C) It requires the use of flexible budgets.
• D) It requires managers to calculate standard costs but not actual costs.

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Definitions:

Obsessive-compulsive Personality Disorder

A personality disorder characterized by preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Obsessively Clean

Refers to an extreme focus on cleanliness and orderliness, often beyond what is considered normal or healthy.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a manual published by the American Psychiatric Association that provides a standardized language and criteria for the classification of mental disorders.

Cluster System

In psychological testing or data analysis, a cluster system is a method used to group similar objects or individuals based on specific characteristics or qualities.