Which of the Following Statements Regarding the Calculation of Economic

question 20

Multiple Choice

Which of the following statements regarding the calculation of Economic Value Added (EVA®) is not true?

• A) Adjusted accounting data are used to estimate EVA®.
• B) The operating approach and the financing approach lead to identical estimates of EVA®.
• C) EVA® NOPAT represents after-tax cash operating income, after depreciation.
• D) EVA® NOPAT represents after-tax cash operating income, before depreciation.
• E) The divisional cost of capital (minimum rate of return) is used to impute a charge on capital invested in the division during the period.

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Definitions:

U-1 Measure

A specific metric used to evaluate the unemployment rate, focusing on people who have been unemployed for 15 weeks or longer.

U-6 Measure

An unemployment rate that includes not only those who are unemployed and seeking employment but also those who are underemployed and the marginally attached to the labor force.

Spells Of Unemployment

Spells of unemployment refer to periods during which an individual is out of work and actively seeking employment.

U-5 Measure

An alternative unemployment rate that counts not only unemployed individuals actively seeking work but also those who are marginally attached to the labor force plus those working part-time for economic reasons.