Which of the Following Is Not a Benefit of Postaudits

question 55

Multiple Choice

Which of the following is not a benefit of postaudits of capital investments?

• A) Considers changes in the actual operating environment.
• B) Guides managers to make capital investment in the best interests of the firm.
• C) Ensures that resources are used wisely by evaluating profitability.
• D) Supplies feedback to managers that should help improve decision making.
• E) All of these are benefits.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods, illustrating the concept of trade-offs.

Money Income

The total amount of monetary earnings received by an individual or household over a specific period of time, including wages, salaries, and other earnings.

Factors of Production

The inputs used in the production of goods or services, including land, labor, capital, and entrepreneurship.

Economic Resources

Inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.