Economic Value Added Uses "Adjusted After-Tax Operating Profit" as One

question 24

Multiple Choice

Economic value added uses "adjusted after-tax operating profit" as one of its inputs. One purpose of using after-tax profit, rather than operating profit, is to B:

• A) Encourage managers to minimise taxes
• B) Improve information reported to the ASIC
• C) Encourage managers to file tax reports
• D) Remove bias from the EVA calculation