The Difference Between the Expected Monetary Value with Additional Information

question 83

Short Answer

The difference between the expected monetary value with additional information (EMV')and the expected monetary value without additional information (EMV^*)is called the expected value of ____________________ information and is denoted EVSI.

---

Definitions:

Discount

The reduction from the full amount or value of something, often used as an incentive in sales.

Merchandise Inventory

Merchandise inventory is the total cost of all goods held by a company for the purpose of resale during a given period.

Schedule of Accounts Payable

A detailed listing of all the amounts a company owes to its suppliers or vendors, but has not yet paid.

Subsidiary Ledger

A detailed ledger that contains information for individual accounts, supporting the summary data in the general ledger.