Which of the Following Adjustments to After-Tax Operating Income Is

question 60

Multiple Choice

Which of the following adjustments to after-tax operating income is used to approximate cash income for EVA?

• A) expensing research and development costs
• B) using LIFO inventory method
• C) deducting after tax interest expense
• D) using taxes paid rather than tax expense

---

Definitions:

Performance Evaluation

The formal assessment and appraisal of an employee's work performance over a specific period, typically to determine job effectiveness, identify strengths, and pinpoint areas for improvement.

Control Group

In experimental research, it refers to the group of participants that does not receive the experimental treatment, used as a baseline to compare the effects of the treatment.

Experimental Group

In research, the group of subjects that receives the treatment or intervention being tested, as opposed to the control group which does not.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to investigate its effect on the dependent variable.