Using Economic Value Added (EVA) to Calculate Residual Income, the Cost

question 16

Multiple Choice

Using Economic Value Added (EVA) to calculate residual income, the cost of capital employed is

• A) the standard percentage cost of capital multiplied by the average capital employed.
• B) the actual percentage cost of capital multiplied by the average capital employed.
• C) the standard percentage cost of capital multiplied by the total capital employed.
• D) the actual percentage cost of capital multiplied by the total capital employed.

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Definitions:

Task Significance

The extent to which a job has a substantial impact on the lives or work of other people, either in the immediate organization or in the external environment.

Manifest Needs Theory

A psychological theory suggesting that certain human needs are openly communicated and visible, influencing behavior in different situations.

Affiliation

The need or desire to form connections with others, often driven by a sense of belonging or social identity.

Valence

In psychology, the intrinsic attractiveness or averseness of an event, object, or situation.