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Your friend has accepted a position with a large manufacturing company as production manager.She has found out that she must analyze and report any variances that relate to production.She has been told that managers use a method called "management by exception" and is concerned that any variance will be viewed negatively by her supervisors.
Required:
Explain to your friend the concept of “management by exception” and put her mind at ease about all variances being viewed as negative and explain what factors may be considered when deciding what variances to investigate.
Liquidated
Converted assets into cash or paid off a debt, often referring to the process of closing a business and distributing its assets to claimants.
Execution Phase
The stage in a project or plan where the strategies and plans are put into action or carried out.
Optimal Asset Allocation
The practice of distributing investments among various asset classes in a way that maximizes return while minimizing risk, tailored to an investor's risk tolerance and time horizon.
Security Selection
Choice of specific securities within a given asset class.
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