The Following Are Advantages of Using EVA as a Performance

question 16

Multiple Choice

The following are advantages of using EVA as a performance measure except

• A)EVA can substitute for explicit monitoring by top management.
• B)EVA makes the cost of capital visible to operating management, thereby reducing capital employed.
• C)EVA does not measure present values.
• D)EVA highlights business units that are underperforming their peers.

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Definitions:

Good

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Circumstances

A fact or condition connected with or relevant to an event or action, often influencing it or determining the outcomes.

Economic Theory

A set of principles and models that attempts to explain how economies operate and how economic agents interact.

Real-world Events

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