For Purposes of Computing EVA,the Minimum Desired Rate or Return

question 4

Multiple Choice

For purposes of computing EVA,the minimum desired rate or return on an investment is known as

• A)ROI.
• B)cost of capital.
• C)residual income.
• D)profit margin.

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Definitions:

Cost Of Goods Manufactured

The cumulative expenses a business incurs to manufacture products during a particular timeframe, encompassing materials, workforce, and indirect costs.

Direct Labour

The workforce directly involved in the production of goods or the provision of services.

Cost Of Goods Sold

Expenses directly related to the production of a company’s merchandise for sale, including the cost of labor and materials.

Raw Materials

The basic material from which a product is made, typically used in the manufacturing or production process.