ICANManagement InformationData and Management Reporting2025

Which of the following BEST describes 'exception reporting' as used in management information systems?

AA report that covers all transactions processed during a period regardless of their value
BA report that highlights only those items that deviate significantly from a predetermined standard or budgetCORRECT
CA report prepared exclusively for external stakeholders such as regulators and shareholders
DA report that consolidates financial data from multiple subsidiaries into a single group statement
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Why the answer is B, and why the others tempt you.
Exception reporting focuses management attention on variances or deviations that exceed set thresholds, allowing managers to apply the principle of management by exception. It avoids information overload by filtering out routine, in-line results. Options A, C, and D describe different types of reports — comprehensive transaction reports, external reports, and consolidation reports respectively.
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