Outcome controls are effective when there's little internal interference between managerial decision making on the one hand and business performance on the other.

Question

Quizplus · Accepted Answer

This statement is correct. Outcome controls are effective when there is little internal interference between managerial decision making and business performance. In other words, if a company's performance is largely driven by external factors (such as demand for their products or industry trends), outcome controls can be an effective way to measure and incentivize performance. However, when there are internal factors that can affect performance (such as changes in strategy or management decisions), outcome controls may be less effective.

Outcome Controls Are Effective When There's Little Internal Interference Between