CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

The post-audit performed as part of the capital budgeting process is least likely to ______
A. improve a firm's operations.
B. produce concrete ideas for future investments.
C. force management to revise the original forecast to match actual results.
Explanation: The purposes of the post-audit process are to monitor forecasts, improve operations, and generate concrete ideas for future investments. The original forecast is, in effect, a "sunk cost." The point is not to revise the original forecast after the fact, but to create a more accurate forecast over the new planning horizon.

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