Economic Value Added, Unlike Residual Income, Charges Managers for the Costs

question 85

True/False

Economic value added, unlike residual income, charges managers for the costs of their investments in long-term assets and working capital.

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Definitions:

Managerial Functions

Encompass planning, organizing, leading, and controlling, which are the core responsibilities of managers in an organization.

Managerial Skills

The capabilities and competencies that a manager needs to perform their duties effectively, which include technical, human, and conceptual skills.

Manager's Job

The set of responsibilities held by an individual in a managerial position, including planning, organizing, leading, and controlling resources to achieve organizational goals.

Effectiveness

Effectiveness refers to the degree to which something is successful in producing a desired or intended result, often used to evaluate the efficiency and outcomes of processes or actions.