IMANET Exam CMA Topic 4 Question 98 Discussion

Actual exam question for IMANET's CMA exam

Question #: 98
Topic #: 4

[All CMA Questions]

Post-investment audits?

AComplete a stage in the capital budgeting process.

BSieve as a control mechanism.

CAllow the outcome of a project to be evaluated as soon as possible

DDeter managers from proposing profitable investments

Show Suggested Answer

Suggested Answer: B

Post-investment audits should be conducted to serve as a control mechanism and to deter managers from proposing unprofitable investments. Actual-to-expected cash flow comparisons should be made, and unfavorable variances should be explained. Individuals who supplied unrealistic estimates should have to explain Differences.

by Eric at Sep 18, 2024, 05:53 AM

Limited Time Offer

25%

3 months ago

I think option C is the correct answer. Post-investment audits allow us to evaluate the outcome of a project as soon as possible, which is crucial for learning and improving our investment decisions.

upvoted 0 times

Ryan

3 months ago

I think it also helps in identifying any issues early on.

upvoted 0 times

...

Sage

3 months ago

I agree, option C allows us to assess the project quickly.

upvoted 0 times

...