Performance reports of responsibility centers may include uncontrollable items to influence behavior that is in alignment with corporate strategy.

Question

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Controllable items are the items that can be influenced by the manager of a responsibility center. On the other hand, uncontrollable items are the ones that cannot be controlled by the manager. However, performance reports may include uncontrollable items to influence behavior that is in alignment with corporate strategy. This is because these items may still impact the overall performance of the company and it is important for the manager to consider them while making decisions.

Performance Reports of Responsibility Centers May Include Uncontrollable Items to Influence