The correct answer is: C. both (a) and (b)
A management by exception report is a report that highlights only the information that is out of the ordinary or that requires attention. This type of report can help managers to focus on the most important issues and to make better decisions.
An aged accounts receivable report is a report that shows the amount of money that is owed to a company by its customers. This report can be used to identify customers who are not paying their bills on time, which can help managers to take action to collect the money that is owed.
An overtime earnings report is a report that shows the amount of overtime that employees have worked. This report can be used to identify employees who are working too much overtime, which can help managers to make sure that employees are not being overworked.
Both of these reports are examples of management by exception reports because they highlight information that is out of the ordinary and that requires attention.