Liz is the treasurer of a manufacturing company. Liz arranged financing for a plant expansion. She and the company's controller are comparing the additional sales from higher production capacity against the costs of financing the expansion and the expenses to support the additional capacity. What are Liz and the controller evaluating?
A)balanced scorecard
B)EVA
C)feedback control
D)MVA

Question

Liz is the treasurer of a manufacturing company. Liz arranged financing for a plant expansion. She and the company's controller are comparing the additional sales from higher production capacity against the costs of financing the expansion and the expenses to support the additional capacity. What are Liz and the controller evaluating?
A)balanced scorecard  
B)EVA  
C)feedback control  
D)MVA

Quizplus · Accepted Answer

Liz and the controller are evaluating the financial performance of the plant expansion using Economic Value Added (EVA), which considers the costs of financing and expenses against the additional sales generated by the expanded production capacity. The balanced scorecard and feedback control are management tools for measuring and improving organizational performance, while MVA (Market Value Added) considers the difference between a company's market value and the capital invested in it.

Liz Is the Treasurer of a Manufacturing Company