1. Managers who properly apply the concept of "management by exception" will:

Select one:

a. investigate only unfavorable variances.

b. investigate only favorable variances.

c. always investigate unfavorable and favorable variances regardless of size.

d. investigate only variances of a certain size or scope.

2.

Return on investment (ROI) is calculated by:

Select one:

a. multiplying the margin by the turnover.

b. dividing the margin by the turnover.

c. dividing the turnover by the margin.

d. adding the margin and the turnover.