In the financial perspective, economic value added would be an appropriate measure for
A)revenue growth.
B)cost reduction.
C)improving asset utilization.
D)risk management.

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is a financial performance metric that measures the residual income that a company earns after accounting for the cost of its capital. It is a useful measure for improving asset utilization because it takes into account the cost of capital and the returns generated from assets. EVA helps to identify areas where a company can improve its asset utilization in order to increase its profitability. However, EVA may not be the best measure for revenue growth, cost reduction, or risk management.

In the Financial Perspective, Economic Value Added Would Be an Appropriate