Question

With ________, managers look at the size of the variances between actual results and budgeted amounts to determine which variances a manager should investigate.

Answer 1

With management by exception, managers look at the size of the variances between actual results and budgeted amounts to determine which variances a manager should investigate.

In a management style known as "management by exception," all budget variations over a particular amount are looked into, regardless of whether they are positive or negative. The concept is based on the idea that even a positive budget variance may be a sign of issues. For instance, a department may not be performing any preventative maintenance if there is a favourable variance for maintenance.

The approach allows staff to make decisions within the parameters of the budgeted mandate while focusing management's attention on the areas where its expected outcomes are not being attained.

To know more about management by exception refer here:

brainly.com/question/13825860

#SPJ4