Management by exception is a management system that compares actual results to a budget so that: Multiple Choice managers can be rewarded except when they report unfavorable variances during a given period. o managers can focus on the most significant variances while bypassing trivial discrepancies between actual and budgeted results. managers can focu o managers can focus on items with unfavorable variances and ignore items with favorable variances. o o managers can assign blame to individuals whose areas report unfavorable variances. Poor quality materials could have an unfavorable effect on which of the following variances? A B C D Labor Efficiency Variance No No Yes Yes Materials Quantity Variance No Yes No Yes | 1 0 0 0 C