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    Should Accounting Have to Approve Estimates?

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    Overoptimism by project sponsors.
    Inconsistent forecasts of industry and macroeconomic variables.
    Capital budgeting organized solely as a bottom-up process.

    Do you think that accounting should have to approve all estimates and hold management accountable for anything that doesn't seem right? Why or why not?

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    Solution Preview

    No, because of the fact that management must ascertain dozens of different financial statement elements wherein subjective estimates of ...

    Solution Summary

    81 words offer an opinion on whether all project estimates that seem unrealistic should need approval from accounting.