Which of the Following Items Would Not Require an Adjustment

question 13

Multiple Choice

Which of the following items would not require an adjustment to capital employed when using economic value added (EVA) ?

• A) Research & development costs.
• B) Advertising expenditures.
• C) Preferred stock.
• D) Patents developeD.
• Stock does not require an adjustment to capital employed;the other three do because they are expensed under GAAP.

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Definitions:

Number of Guests

Refers to the count of individuals attending an event or accommodated by a service, such as in a hotel or restaurant.

Activity Variance

The difference between the planned activity and the actual activity level, which can affect budgeting and operations.

Revenue

The total amount of money generated by a company through its activities, often from sales of products or services.

Flexible Budget Performance Report

compares actual results to budgeted amounts adjusted for the actual level of output, aiding in the evaluation of financial performance.