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IMANET Exam CMA Topic 4 Question 98 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 98
Topic #: 4
[All Certified Management Accountant Questions]

Post-investment audits?

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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

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Vi
17 days ago
They also serve as a control mechanism to ensure projects stay on track.
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Graciela
23 days ago
I think they help deter managers from proposing unprofitable investments.
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Bonita
27 days ago
D seems like the most amusing option. Imagine a manager being deterred from proposing profitable investments - that's like a comedian deterring laughter!
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Nancey
27 days ago
Post-investment audits are important to evaluate project outcomes.
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Scot
28 days 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.
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Ryan
19 days ago
I think it also helps in identifying any issues early on.
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Sage
20 days ago
I agree, option C allows us to assess the project quickly.
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