The Last Step in the Capital Budgeting Process Is Control

question 64

Multiple Choice

The last step in the capital budgeting process is control which compares the actual results with the projected results. These comparisons are known as:

• A)cash inflows.
• B)post-audits.
• C)ranks.
• D)cash outflows

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Definitions:

Corrective Action

An action taken to rectify or eliminate the cause of a detected non-conformance, defect, or other undesirable situation to prevent recurrence.

Measure Actual Performance

Measuring actual performance involves assessing the real outputs or results of processes, individuals, or organizations against planned or expected outcomes.

Control Process

A systematic effort to set performance standards, measure actual performance, and take corrective action as necessary.

Establish Objectives

The act of identifying and setting specific goals or targets that an organization or individual aims to achieve.