Management by exception Question 18 options: means that material differences wil

Question

Management by exception Question 18 options:means that material differences will be investigated. means that all differences will be investigated. causes managers to be buried under voluminous paperwork. means that only unfavorable differences will be investigated.

Which of the following is not a true statement? Question 22 options: All costs are controllable at some level within a company. The term segment is sometimes used to identify areas of responsibility in decentralized operations. Fewer costs are controllable as one moves up to each higher level of managerial responsibility. Responsibility accounting applies to both profit and not-for-profit entities. ?

Which responsibility centers generate both revenues and costs? Question 24 options: Investment and profit centers Cost and investment centers Only profit centers Profit and cost centers

Explanation / Answer

1) Management by exception

Management by exception is the practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount. For example, the company controller may be required to notify management of those expenses that are the greater of $10,000 or 20% higher than expected

So from the above defition we can say that Management by exception means only material difference will be investigated or only unfavorable differences will be investigated

2) Contrallable Cost

Fewer costs are controllable as one moves up to each higher level of managerial responsibility is not a true statement

3) Responsibilty Accounting

Profit Centre and Investment centre generates both revenue and cost

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