Which of the Following Items Would Not Require an Adjustment

question 69

Multiple Choice

Which of the following items would not require an adjustment to capital employed when using economic value added (EVA) ?

• A)Research & development costs
• B)Advertising expenditures
• C)Preferred stock
• D)Patents developed

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Definitions:

Machine Setups

The process of configuring or preparing machinery for a particular job, task, or production run.

Variable Cost

Expenses that change in proportion to the level of goods or services produced, such as raw materials or direct labor costs.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.