What measurement tool determines the profits that remain after the cost of capital has been deducted from operating profits?
A)Return on Investment
B)Balanced Scorecard
C)Economic Value Added
D)HRIS
E)HR Scorecard

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is a measurement tool that determines the profits that remain after the cost of capital has been deducted from operating profits. It is a more comprehensive calculation than Return on Investment because it takes into account the cost of financing the investment. The Balanced Scorecard, HRIS, and HR Scorecard are not relevant to this specific measurement.

What Measurement Tool Determines the Profits That Remain After the Cost