Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The postaudit of a capital investment project should be made using the same analytical technique that was used in deciding to make the investment. This ensures consistency and accuracy in evaluating the project's actual performance against projected performance. The purpose of postaudits is to evaluate the success of the investment decision and identify any areas where improvements can be made, not specifically to improve cost-volume-profit analysis. Expected cash flows and the company's cost of capital may be used in the postaudit process, but they are not the only factors taken into consideration. A postaudit can be conducted at any time after the capital investment is made, not only at the time of purchase.

Which of the Following Statements Is Correct