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:
A) postaudits.
B) sensitivity analysis.
C) performance operating plans.
D) horizontal analysis.
E) segmented reporting.

Question

Quizplus · Accepted Answer

Postaudits are used to evaluate the performance of a division's major investments after they have been made, helping to address issues related to the short-term focus of financial metrics like ROI, residual income, and EVA by assessing actual versus expected results.

To Partially Eliminate the Problems That Are Associated with the Short-Term