Why Are Accounting Distortions Removed When Evaluating Performance Using EVA

question 43

Multiple Choice

Why are accounting distortions removed when evaluating performance using EVA?

• A)To remove amounts that are a free source of financing
• B)To remove amounts that divisional managers are unable to control
• C)To remove the costs of assets that must be capitalized under GAAP
• D)To encourage managers to spend money on elements that will benefit the company in the long run

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Definitions:

Health-Promoting Behaviors

Actions taken by individuals to maintain or improve their health.

Rehabilitation

A program or process aimed at enabling individuals recovering from illness, injury, or addiction to restore lost skills, regain autonomy, and improve their physical, mental, and social capabilities.

Screening

The practice of testing or examining people for the presence of diseases or undesirable conditions before any symptoms appear.

Health Education

The provision of information and learning experiences to promote and enhance health and wellness.