Which of the Following Is a Disadvantage of Postaudits

question 37

Multiple Choice

Which of the following is a disadvantage of postaudits?

• A) They evaluate profitability rather than cash flows.
• B) They may point to the need for additional funding for the project.
• C) They tend to hold managers accountable for capital investment decision making.
• D) The assumptions driving the original analysis may be invalidated by changes in the actual operating environment.
• E) All of these.

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Definitions:

Voluntary Behavior

Actions that are under conscious control, as opposed to automatic or reflexive behaviors.

Thorndike's Law

A principle of learning that emphasizes the effect of rewards and punishments on behavior, suggesting that actions followed by positive outcomes are reinforced and more likely to be repeated.

Pleasurable Consequence

A positive outcome or reward that follows a behavior, making it likely that the behavior will be repeated in the future.

Involuntary

Actions or reactions that occur without conscious control or choice.