The greater the influence of noncontrollable factors on responsibility center results, the more problems there are in using the results to represent a manager's performance.

Question

Quizplus · Accepted Answer

If noncontrollable factors such as external economic conditions, competitor actions, or changes in regulations have a significant impact on the results of a responsibility center, it becomes more difficult to accurately evaluate a manager's performance. In such cases, it may be necessary to adjust the results or use other measures to fairly assess a manager's effectiveness.

The Greater the Influence of Noncontrollable Factors on Responsibility Center