When Evaluating Managerial Actions,which of the Following Alternate Measures Overcomes

question 169

Multiple Choice

When evaluating managerial actions,which of the following alternate measures overcomes many of the problems with ROI?

• A)Residual Income
• B)EVA
• C)Both Residual Income and EVA.
• D)Neither Residual Income nor EVA.

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Definitions:

Periodically Recorded

Financial transactions or events that are recorded at regular intervals, such as monthly, quarterly, or annually.

Bank Credit Cards

Financial instruments issued by banks that allow cardholders to borrow funds with which to pay for goods and services, subject to the agreement that the funds will be repaid.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Credit Card Sales

Transactions in which goods or services are purchased using a credit card, immediate revenue for the seller, albeit often with processing fees deducted by the credit card processor.