D. Principles of Performance Evaluation. 1. Management by exception means that 2. For management by exception to be effective, there must be guidelines for identifying an exception. The usual criteria are: a. b. 3. Behavioral principles include: a. b. c. d. e. 4. Performance evaluation reports under responsibility accounting should be based on certain reporting principles: a. b. c. d. e. 5. A responsibility reporting system involves the preparation of a report for a. b