Management by exception is a term often used in performance evaluation. Describe management by exception and how it is used in the evaluation of cost revenue and profit centers V. along with Management by exception is a tool Performance reports for cost, revenue, and profit centers typically list that allows management to focus its attention on important differences between andior varianos Management does not Using management by exoption, management only investigates variances bother investigating smaller variance, since the cost For centers, management would focus on the difference between the actual results and the budget. and the sales volume variance centers are responsible for both generating revenue and controling costs, so centers could look at both the flexible budget variance center managers would review both of these variances