Question

The system that compares actual results to a budget so that significant deviations can be flagged and investigated further is called:

Answer 1

The system that compares actual results to a budget so that significant

deviations can be flagged and investigated further is called management by

exception

Management by exception is the type that helps the managers to focus on

the most important variances while ignoring unimportant changes between

the budget and actual results.

This is commonly used in budgets preparation to ensure that the important

factors which may affect project completion are taken into consideration to

prevent shortages.

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