Select the Incorrect Statement Regarding Postaudits of Capital Investment Decisions

question 147

Multiple Choice

Select the incorrect statement regarding postaudits of capital investment decisions.

• A) A postaudit should be conducted at the end of the project.
• B) The postaudit helps management determine whether a project that had been accepted should have been rejected.
• C) A postaudit is only necessary for a capital investment selected using a technique that does not consider the time value of money.
• D) The goal of a postaudit is to provide feedback that can be used to improve the accuracy of future capital investment decisions.

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Definitions:

Correlation

The extent to which two factors vary together, and thus of how well either factor predicts the other. The correlation coefficient is the mathematical expression of the relationship, ranging from −1 to +1.

Dependent Variables

In an experiment, these are the variables that are tested and measured; they depend on the independent variable.

Random Samples

Random samples are a method of selecting a subset of individuals from a population in which each individual has an equal chance of being chosen, used to ensure generalizability of results.

Naturalistic Observation

Observing and recording behavior in naturally occurring situations without trying to manipulate and control the situation.