Uncontrollable external factors can create challenges in measuring the results for which managers should be held responsible. Which of the following is the best example of an uncontrollable external factor for a manager who oversees all of the operations for a business?
A) Production volumes were above normal levels so that overtime was paid to direct labour employees
B) Poor quality direct materials were purchased so more materials than usual were required in the manufacturing process
C) Raw materials prices increased due to a global shortage
D) Utilities costs were higher than normal even though weather and usage were typical for that time of year

Question

Quizplus · Accepted Answer

C) Raw materials prices increased due to a global shortage is the best example of an uncontrollable external factor because it is a global issue that a manager cannot influence or control, unlike the other options which could be influenced by managerial decisions or actions.

Uncontrollable External Factors Can Create Challenges in Measuring the Results