Which of the Following Statements About Management by Exception Is

question 3

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 10%.
• 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:

Functional Currency

The main currency used by a business or unit within a business to conduct its day-to-day transactions.

Exchange Rates

The worth of one currency when converting it into another.

Inventory

The total amount of goods and materials held by a company intended for sale or production.

Functional Currency

The primary currency used by a business or entity in its day-to-day operations and financial reporting.