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Andrea Rueda
on Nov 12, 2024

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The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.

Standard Costs

Predetermined or estimated costs used to measure the performance of a company based on the efficient use of labor and materials.

Actual Costs

The realized expenses incurred in the production of goods or services, as distinguished from estimated costs or budgeted amounts.

Principle of Exceptions

A management principle focusing on the identification and handling of cases that deviate from the norm.

  • Understand the principle of exceptions and its application in managerial focus and decision-making.
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Areyona EvansNov 19, 2024
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