24. The block code is the coding scheme most appropriate for a chart of accounts. 40. Which of the following best describes a profit center: a. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. b. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. c. authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. d. authority to provide specialized support to other units within the organization. e. responsibility for combining the raw materials, direct labor, and other factors of production into a final product. Show
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November 14, 2022/ Steven Bragg
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. For example, the company controller may be required to notify management of those expenses that are the greater of $10,000 or 20% higher than expected. The purpose of the management by exception concept is to only bother management with the most important
variances from the planned direction or results of the business. Managers will presumably spend more time attending to and correcting these larger variances. The concept can be fine-tuned, so that smaller variances are brought to the attention of lower-level managers, while a massive variance is reported straight to senior management. Advantages of Management by ExceptionThere are several valid reasons for using this technique. They are:
Disadvantages of Management by ExceptionThere are several issues with the management by exception concept, which are:
How does management by exception help in controlling the activities of the organization?Management by exception allows managers to lead their company efficiently by delegating tasks. Managers focus on achieving the company's vision while other employees work on daily tasks to keep the company operational. This allows all company employees to stay productive and specialize in certain tasks.
What are the advantages of management by exception?The main advantage of management by exception is that problematic issues are identified rapidly and managers are able to use their time and energy more wisely for important issues rather than for less important ones that could provoke delays in their daily operations.
What are some high impact situations where management by exception can prove to be useful?Management by exception can work well in situations where being proactive is not required. It can streamline business operations, creating efficiency within the management. If your business is up and running already, with effective and well-defined processes in place, you can utilize the style to your advantage.
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