The principle of exceptions allows managers to focus on correcting variances between

A) standard costs and actual costs
B) variable costs and actual costs
C) competitor's costs and actual costs
D) competitor's costs and standard costs

The principle of exceptions is used to identify and focus on significant variances between standard costs (which are the planned or expected costs) and actual costs. By focusing on these significant variances, managers can identify the areas of the business that need attention and corrective action, and ultimately improve efficiency and profitability. The other options (B, C, and D) are not relevant to the principle of exceptions.