Which of the Following Is an Independent Check on Performance

question 20

Multiple Choice

Which of the following is an independent check on performance?

• A)The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed.
• B)Production teams perform quality evaluations of the products that they produce.
• C)The General Manager compares budgeted amounts with expenditure records from all departments.
• D)Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

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Definitions:

Investment Risk

The possibility of losing some or all of the original investment, often measured by the volatility of returns.

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy, often leading to riskier financial decisions.

Affect Heuristic

A mental shortcut that influences the way people make decisions based on their emotions and feelings.

Loss Aversion

A behavioral finance concept that describes the tendency for people to prefer avoiding losses to acquiring equivalent gains.