Which of the following statements about management by exception and continuous improvement are true:

1. Management by exception generally requires managers to concentrate on areas that are performing as expected
2. Continuous improvement generally requires managers to spend their time on all variances irrespective of the size (or magnitude) of these variances
3. Management by exception is generally more appropriate than continuous improvement for a firm which has just changed itsmanufacturing processes and its product offering significantly.

Group of answer choices

Statement 1 only

Statement 2 only

Statement 3 only

Statement 1 and 2 only

Statement 2 and 3 only