Uncontrollable External Factors Can Create Challenges in Measuring the Results

question 19

Multiple Choice

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

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Definitions:

Federal Personal Income Tax

The tax levied by the federal government on individuals' income, including wages, investments, and other forms of earnings.

Foreign Aid

Financial, technical, or material support given by one country to another, often for development projects, humanitarian aid, or to foster diplomatic relationships.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period, a primary indicator of an economy's health.

Federal Government

The national government of a federal system, possessing powers enumerated by its constitution.