Management By Exception Definition Management By Exception Definition: Management by exception is a system of management in which standards are set for various operating activities, with actual results then compared to these standards. Any differences that are deemed significant are brought to the attention of management as “exceptions.” In other words, Management by exception is the process of detecting problems and eliminating them so they do not occur again. Other Related Accounting Articles: Responsibility Accounting Definition Labor Rate Variance Optimization Computerized Accounting What is Sales Volume Variance? Managerial or Management or Cost Accounting Terms and Definitions Theory of Constraints Standard Cost Method Definition Investing Activities definition Liquidity Gap Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download Tweet Pin It Shamsa Rafique Accounting Definitions No Comments Home » Accounting Definitions » Management By Exception Definition About The Author Shamsa Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Save my name, email, and website in this browser for the next time I comment.