When Managers Use the Process Called 'Management by Exception

question 83

Multiple Choice

When managers use the process called 'management by exception':

• A) they take action when there is a significant variance between planned and actual results.
• B) they take action when there is a variance of any size or amount between planned and actual results.
• C) they are allowed to use standard costs rather than actual costs on financial statements issued to decision makers.
• D) they are not required to compute the standard cost of making a product.

---

Definitions:

Cuboidal Epithelium

Cuboidal epithelium consists of cube-shaped cells with a central nucleus, found lining various glands and ducts, playing a role in secretion and absorption.

Stratified Epithelium

A type of epithelial tissue composed of several layers of cells, providing protection against mechanical and chemical stress.

Pseudostratified

Describes epithelial tissue that appears to be layered but all cells actually reach the basal surface, giving a deceptive appearance of stratification.

Transitional

Referring to a phase or state that is changing or evolving from one form or condition to another, often used in contexts such as transitional economies or transitional epithelium.