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The system that compares actual results to a budget so that significant deviations can be flagged and investigated further is called:

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Management by exception involves comparison of actual results to a budget  so they can be noted and investigations commencing on them to find out the exact cause.

Management by exception is the type that involves the managers focusing on most important variations and ignoring unimportant changes between the budget and actual results.

This is commonly used in budgets preparation to ensure that the important

factors which may affect project completion are taken into consideration to

prevent shortages.

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