The principle of exceptions allows managers to focus on correcting variances between

A) standard costs and actual costs
B) variable costs and actual costs
C) competitor's costs and actual costs
D) competitor's costs and standard costs

Principle of Exceptions

The principle of exceptions is a management concept focusing on identifying and dealing with cases that deviate from the normal operation or standards, thus streamlining processes and oversight.

Standard Costs

Predetermined costs for manufacturing or acquiring products, used as a benchmark to compare with actual production costs for budgeting and performance evaluation.

Actual Costs

Refers to the genuine expenses incurred in the production, acquisition, or delivery of products and services.