Which of the Following Elements Is Not Used in the Calculation

question 59

Multiple Choice

Which of the following elements is not used in the calculation of economic value added for an investment center?

• A) An investment center's after-tax operating income.
• B) An investment center's total assets.
• C) An investment center's return on investment.
• D) An investment center's current liabilities.
• E) A company's weighted-average cost of capital.

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Definitions:

Internal Environment

The conditions, factors, and elements within an organization that influence its activities and choices, including culture, values, and internal resources.

Strategic Planning

The process of defining a strategy, or direction, and making decisions on allocating resources to pursue this strategy.

Specific Strategies

Detailed plans designed to achieve targeted objectives within a specific timeframe, often tailored to address certain challenges or opportunities.

Creative Strategy

Creative strategy outlines the direction and approach for achieving a marketing campaign's objectives through compelling and imaginative content and design.