Performing a post-audit is important because O managers will be more likely to submit reasonable data when they make investment proposals if they know their estimates will be compared to actual results. O it provides a formal mechanism by which the company can determine whether existing projects should be terminated. O it improves the development of future investment proposals because managers improve their estimation techniques by evaluating their past successes and failures. O all of these.

Performing a post-audit is important because O managers will be more likely to submit reasonable data when they make investment proposals if they know their estimates will be compared to actual results. O it provides a formal mechanism by which the company can determine whether existing projects should be terminated. O it improves the development of future investment proposals because managers improve their estimation techniques by evaluating their past successes and failures. O all of these.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 1CMA: Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to...

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Chose the correct explanation of verifying the decision from the following: Select one: O a. Verifying the decision: It is the manager obligation to understand whether the decision is appropriately implemented. Verification of implementation of decision ensures the fruitful implementation of objectives. The stated alternative may be a inapplicable one and might lead to high cost. It can be measured with the help of verifying the decision if the manager senses that the selected alternative is not the best one; an amendment may be made to achieve desired goals. This is the simple process of decision- making. b. Verifying the decision: It is the duty of every manager to see whether the decision is properly implemented or not. Verification of implementation of decision ensures the achievement of objectives. The selected alternative may be a well-chosen one and might cause loss to the organization. This can be measured with the help of verifying the decision the manager feels that the…
Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard. c. It relies on the perception of the users with regard to service provided. d. It is directly derived from scientific management theories.
If there are deviations from the stated goals and objectives, what steps can managers take to get back on track? Provide at least two specific examples.
Which of the following statements about performance targets is true? a.Performance targets have nothing to do with performance metrics. b.Performance targets are the same thing as strategic initiatives. c.Performance targets are the same thing as performance metrics. d.Performance targets are levels of improvement that management wants to achieve for performance metrics.
Briefly review the sensitivity analysis that is presented in the case exhibits. Under what circumstances is this project financially attractive? What bets were the company making when they went ahead with the project? DO NOT HAVE TO PERFORM YOUR OWN SENSITIVITY ANALYSIS. YOU ARE TO INTERPRET THE SENSITIVITY ANALYSIS THAT IS GIVEN.
for each question below, write a short answer Summarise the key criticisms that are made to the DCF model and as an analyst, how do you think you could circumvent some of these problems? Think about a firm’s valuation process and take a step back. Do you believe it is more about models accuracy or negotiation and instinct? Think about further issues with the DCF model and Discuss them.
6. Risk assessment most commonly focuses on two criteria - impact and likelihood. As an organization's risk assessment process evolves, what other criteria might be valuable to consider and why? 1. They should also consider changes in the process since the last audit because that will help them better understand impact and help answer questions about what caused the issue.
Adequate project controls like SPI and CPI have the advantages of a. holding people accountable b. Prevent small problems from getting large c. making the work of accounting department easier d. both A and B are correct C. A,B and C are all correct
We talk about a problem in Corporate Governance in active monitoring. A monitor learns about the Bad Project, which yields private benefit B, with probability M. The monitor learns nothing with probability 1-M. This probability of M of effective monitoring (=monitoring level) is dependent on the effort cost or what we call disutility of effort g(M) incurred by this monitor. It is assumed that disutility of effort is increasing g’()>0 and convex g’’()>0. We also assume that g’(0) and g’(1) = ∞. Let Rb be the borrower’s reward. In successful case, its value is b/Δp < Rb < B/Δp. Let Rm be the monitor’s payoff in a successful case. The question is: Show the Net Present Value of the project for monitoring level M.
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Innovation requires a formal investment in R&D. True False
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