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.

---

Definitions:

Morale

The assurance, zest, and self-control exhibited by an individual or team at a specific moment.

Ideas

Mental concepts or thoughts that can lead to creativity or planning.

Transactive Memory

A psychological concept that explains how groups collectively store, encode, and retrieve knowledge more efficiently than individuals.

Groupthink

A phenomenon where decisions are made or solutions are agreed upon by a group, prioritizing unanimity and cohesion over critical evaluation of alternatives.