Which of the Following Is NOT a Benefit of Postaudits

question 86

Multiple Choice

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

• A)They consider changes in the actual operating environment.
• B)They guide managers to make capital investment in the best interests of the firm.
• C)They ensure that resources are used wisely by evaluating profitability.
• D)They supply feedback to managers that should help improve decision making.

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Definitions:

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any individual or preference criterion better off without making at least one individual or preference criterion worse off.

Potentially Efficient

A situation or system that has the capacity to achieve efficiency but has not yet achieved it.

Unequivocally Pareto Optimal

A situation where an allocation cannot be adjusted to make one individual better off without making someone else worse off, signifying an optimal allocation of resources.

Pareto Optimality

A situation where resources are distributed in such a way that it's not possible to improve the position of any individual or satisfy a preference more fully without adversely affecting at least one other individual or preference criterion.