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marin [14]
2 years ago
14

To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and

EVA, the performance of a division's major investments is commonly evaluated through: Select one: a. horizontal analysis. b. segmented reporting. c. performance operating plans. d. sensitivity analysis. e. postaudits.
Business
1 answer:
levacccp [35]2 years ago
7 0

To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

<h3>What are post audits?</h3>
  • The post-audit procedure establishes a formal process (feedback) for assessing whether existing initiatives should be continued, extended, or discontinued.
  • That is, the post-audit gives useful information that can be used to fix problems before an investment's performance is jeopardized.
  • The purpose of the post-audit review process is to ensure that management has addressed all of the recommendations given in the Audit Report.
  • The Post-Audit Review occurs shortly after the agreed-upon implementation deadline, which management committed to in the management response.

Therefore, to partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

Know more about post audits here:

brainly.com/question/24112426

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