EVA Will Never Replace ROI as the Standard Performance Measure

question 72

True/False

EVA will never replace ROI as the standard performance measure.

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Definitions:

Lockbox System

A service offered by banks to process payments quickly by having those payments mailed directly to a secure post-office box, from which the bank collects and deposits into the company's account.

Cheque Clearing

The process by which banks settle transactions made by cheques, transferring funds from the issuer's account to the payee's account.

Total Collection Time

The total time taken from issuing an invoice to the receipt of payment from customers.

Customer Cheques

Checks issued by customers as a method of payment for goods or services received.