Which of the following statements best describes the post-audit function in the capital budgeting process?
A. The post-audit should be performed before a purchase decision is made for a new capital budgeting project.
B. The post-audit is a fairly simple process, primarily because it is easy to separate the operating results of one project from those of other related projects.
C. The post-audit involves comparing the actual results of previous capital budgeting decisions with the forecasted results to identify and explain any differences.
D. The results of a post-audit generally can be used to develop future cash flow forecasts for new capital budgeting projects that are 100 percent accurate.
E. Because it is quite expensive to perform, the post-audit should always be considered a voluntary part of the capital budgeting process.
Answer: C
You might also like to view...
Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.
Answer the following statement true (T) or false (F)
Which of the following accounts could be found in the general ledger of a partnership? Income TaxExpenseInterest Expenseon Partner LoansA)NoNoB)YesNoC)YesYesD)NoYes
A. Option A B. Option B C. Option C D. Option D
The adjusted R2 value can be larger or smaller that the R2 values depending on the data set
Indicate whether the statement is true or false
Figure 2-5Lego has traditionally been successful selling its classic construction sets to boys. Recently, Lego introduced a line of building toys especially for girls called Lego Friends. It includes feminine characters, pink and purple theme colors, and allows girls to construct more story-related activities. The company felt this was a way to reach into the girl's toy market where alternatives include princess games and accessories. Considering Figure 2-5 above, this is an example of a ________ strategy that would be found in quadrant ________.
A. product-market expansion; D B. market penetration; A C. product development; B D. diversification; D E. market development; C