Which of the Following Statements About Management by Exception Is

question 164

Multiple Choice

Which of the following statements about management by exception is incorrect?

• A) Managers concentrate on results that are outside the accepted parameters.
• B) There is no need to investigate variances that are less than 20% of the budgeted amount.
• C) Exceptions can be expressed as a percentage of a budgeted amount or a dollar amount.
• D) Many companies use a combination of percentages and dollar amounts.

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Definitions:

Emotional Insecurity

A state of feeling uncertain, anxious, or less confident about oneself, often impacting one's mental well-being and relationships.

Prestige Power

The power stemming from one’s status and reputation.

Organizational Politics

The activities within an organization aimed at improving someone's status or position and are often seen as self-serving at the expense of the company.

Dependence Perspective

The point of view that a person accrues power by being dependent on that person for things they value.