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 labor employees
B) Poor quality direct materials were purchased so more materials than usual were required in the manufacturing process
C) Raw materials prices changed because of a change in environmental laws.
D) Utilities costs were higher than normal even though weather and usage were typical for that time of year

Question

Quizplus · Accepted Answer

Raw materials prices changing due to external factors such as environmental laws is an uncontrollable external factor for a manager. The manager has no control over these laws and therefore cannot be held responsible for any resulting changes in costs. Choices A, B, and D are all examples of factors that a manager may have some level of control or influence over, such as managing production volumes, purchasing direct materials, or conserving utilities.

Uncontrollable External Factors Can Create Challenges in Measuring the Results