Which of the Following Statements Regarding the Calculation of EVA $\rarr$

question 125

Multiple Choice

Which of the following statements regarding the calculation of EVA $\rarr$ is not true?

• A)Adjusted accounting data are used to estimate EVA\(\rarr\).
• B)The operating approach and the financing approach lead to identical estimates of EVA\(\rarr\).
• C)EVA\(\rarr\) NOPAT represents after-tax cash operating income,after depreciation.
• D)EVA\(\rarr\) 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.

---

Definitions:

Culture Support

The promotion, encouragement, and reinforcement of a particular set of norms, values, and behaviors within an organization or community.

Supervisor Support

The guidance and assistance offered by supervisors to their employees, crucial for workplace motivation and achieving task objectives.

Social Support System

A network of family, friends, colleagues, and other individuals that provides emotional, informational, and practical assistance.

Old Habits

Established patterns of behavior that are repeated regularly and tend to occur subconsciously, often hard to change due to their deep-rooted nature in one's routine or personality.