The Following Are Advantages of Using EVA as a Performance

question 24

Multiple Choice

The following are advantages of using EVA as a performance measure EXCEPT:

• A)EVA can substitute for explicit monitoring by top management.
• B)EVA makes the cost of capital visible to operating management,thereby reducing capital employed.
• C)EVA does not measure present values.
• D)EVA highlights business units that are underperforming their peers.

Differentiate between research and development costs in accounting for intangible assets.

Understand the concept and measurement of fair value according to AASB 13.

Identify the key characteristics of intangible assets.

Understand the requirements for recognition of goodwill and intangible assets in business combinations.

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Definitions:

Long-Term Memory

Long-term memory is the capacity of the brain to store and retain information over extended periods, often for the entirety of an individual's life.

Encoded Acoustically

Pertains to the conversion of information into sound patterns for processing or memory storage.

Semantic

Related to the meaning or interpretation of words and language, central to linguistics and understanding language comprehension and expression.

Eidetic Memory

The rare ability to recall images, sounds, or objects with high precision for a brief period after being exposed to them, often referred to as photographic memory.