The Management Technique Whereby Managers Concentrate on Results That Are

question 144

Multiple Choice

The management technique whereby managers concentrate on results that are outside the accepted parameters is called management by ________.

• A) variance
• B) standard
• C) exception
• D) budget

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Machine-Hours

A measure of production time using machines, typically used as a basis for allocating manufacturing overhead to products.

Denominator Level

In cost accounting, refers to the total quantity or capacity used to allocate fixed costs to different cost objects.

Budget Variance

The difference between what was budgeted for a period and what was actually spent or received.