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Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable. Question 4 Budget reports provide the feedback needed by management to see whether actual operations are on course. Question 5 The manager of an investment center can improve ROI by reducing average operating assets. Question 6 What is budgetary control? Question 7 A static budget is appropriate in evaluating a manager's performance if Question 8 What is the primary difference between a static budget and a flexible budget? Question 9 If a company plans to sell 48,000 units of product but sells 60,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on Question 10 Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are: Fixed manufacturing costs Variable manufacturing costs $50,000 per month $12.00 per ton of steel