US CMA Part 1 · Chapter 3 · Question 30 of 30
Under management by exception, which items in a performance report should receive the most management attention?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Significant deviations from budget or standard, whether favorable or unfavorable
Explanation
Management by exception focuses attention on significant variances, both favorable and unfavorable, because these indicate where plans and actual results diverge. Investigating every small variance is not cost-effective.
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