33. The exception principle is the concept that supervisors should concentrate their investigations on activities that deviate substantially from standards. 34. Without spot checking supervisors have no control mechanisms to monitor performance. 35. The extent of involvement that a supervisor has with a budget is to simply ensure performance expectations are met within the contraints of a budget. 36. Historical data does not provide much value when budgeting for the future. 37. Most annual budgets are projections for the following year based on the previous year’s budget. 38. Cost and revenue data are usually reported to the supervisor by his or her subordinate employees in the department. 39. Once the budget is approved by higher-level management supervisors have no more contact with it or interest in it until the next budget cycle. 40. Large organizations employ consultants trained in work efficiency and cost control so that supervisors don’t have be cost conscious. 41. A firm should never be willing to share financial information with employees. 42. Companies often give cost-cutting orders as a result of competition from other businesses. 43. When top management issues an order to cut costs across the board supervisors should stop buying supplies and eliminate preventive maintenance programs. 44. Supervisors who play a key role in cost reduction usually do so with the help of their employees. 45. Inventory control means maintaining quality standards for products and services. 46. Production control involves routing operations scheduling and expediting work flow. 47. The managerial function of controlling is typically performend separately from the other managerial functions.
