QUESTION 5

1. Consider the following five situations:

   (I) Relative performance evaluation is used for evaluating store managers.

   (II) Insurabce policy holders pay deductibles before being covered by the insurance

   (III) The warehouse manager is not held responsible for damages and stolen goods during a riot.

   (IV) Individual stores are allocated (charged) for the cost of advertising done by the headquarters.

   (V) In performance evaluation, the actual outcome is compared witht the flexible budget, not the original budget.

   Which of the above would be examples that go againt the controllability principle (concept)?

   	A.	(I), (II), and (III)
   	B.	(I) , (II), and (IV)
   	C.	(II) and (IV)
   	D.	(III) and (V)