Management by Exception

Management by Exception - MANAGEMENT BY EXCEPTION

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MANAGEMENT BY EXCEPTION Management by exception  means that top management's review of a budget report is focused either  entirely or primarily on differences between actual results and planned objectives.  This approach  enables top management to focus on problem areas. For example, many companies now use online  reporting systems for employees to file their travel and entertainment expense reports. In addition to  cutting reporting time in half, the online system enables managers to quickly analyze variances from  travel budgets. This enables companies to cut down on expense account “padding” such as spending  too much on meals or falsifying documents for costs that were never actually incurred. Management by exception does not mean that top management will investigate every difference.  For  this approach to be effective, there must be guidelines for identifying an exception. 
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Management by Exception - MANAGEMENT BY EXCEPTION

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