Inaccurate Cash Flow Estimates Originate from Several Sources

question 135

Multiple Choice

Inaccurate cash flow estimates originate from several sources. The most significant of these is:

• A)estimating errors made by unbiased financial analysts.
• B)estimating errors made by unbiased managers in the departments proposing projects.
• C)unintentionally biased estimates made by impartial financial analysts.
• D)errors due to the biases of managers in the departments proposing projects.

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Definitions:

Project Definition Phase

An initial stage of a project where goals, objectives, scope, and deliverables are identified and defined.

Direct Control

A management approach where decision-making and oversight are exercised directly over processes, operations, or activities.

Project Management Team

A group of individuals working together to plan, execute, and close project activities to meet objectives and deliverables.

Classification

The act of organizing or grouping entities based on shared characteristics or criteria.