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Which of the Following Statements Regarding Capital Budgeting Decision Errors

Question 53

Multiple Choice

Which of the following statements regarding capital budgeting decision errors is/are true?


A) The consistent use of post-audits precludes an organisation from rejecting a desirable capital budgeting project.
B) The post-audit helps to detect errors that occur when an undesirable capital budgeting project is accepted.
C) The use of post-audits will not detect errors that occur when a desirable capital budgeting project is rejected.
D) The post-audit helps to detect errors that occur when an undesirable capital budgeting project is accepted AND the use of post-audits will not detect errors that occur when a desirable capital budgeting project is rejected.

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