BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consideration of only those items which vary materially from plans
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Consideration of rare events
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Consideration of items selected random
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -Management by exception consists of four steps: Setting the objectives and defining what the norm should be. Assessing performance to see whether performance is on track. Analyzing work or records to determine where performance deviates from objectives. Investigating and solving the exceptions to the norm.
Detailed explanation-3: -Management as a discipline refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.