EVA is used for
A)measuring performance within the firm.
B)rewarding performance within the firm.
C)measuring performance and rewarding performance within the firm.
D)measuring performance within the firm, rewarding performance within the firm, and improving performance within the firm.

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is a measure used for assessing a company's financial performance, rewarding performance through bonuses or incentives, and guiding decisions to improve performance. It calculates the value created beyond the required return of the company's shareholders, thus serving multiple purposes including measurement, reward, and improvement of performance within a firm.

EVA Is Used for