What is management by exception, Accounting Basics

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What is management by exception

Questions:

1. What is management by exception? Why is a standard cost system useful when man-agers control "by exception"?

2. Why do managers care about capacity utilization? Are managers controlling costs when they control utilization?

3. What variances can be computed for direct material and direct labor when some materials or labor inputs are substitutes for others? What information does each of these variances provide?

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Accounting Basics: What is management by exception

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Accounting Basics: What is management by exception

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