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.

---

Definitions:

Representativeness Heuristics

A cognitive bias where an individual categorizes a situation based on how similar it is to a typical case from a category.

Language Abilities

The capacity to understand, produce, and use verbal and written communication effectively, a key aspect of human cognition and social interaction.

Sign Language

Sign Language is a visual means of communication using hand gestures, facial expressions, and body language, primarily used by deaf and hearing-impaired individuals.

Spoken Language

A form of human communication that is based on the use of vocal sounds and words.