Economic value added EVA performance measures
A)Fair market value of income.
B)Economic profit.
C)Segment margin.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a performance measure that calculates the difference between the company's net operating profit after tax (NOPAT) and the cost of capital. Economic Profit is a measure of a company's economic performance, representing the residual income remaining after the deduction of a charge for the opportunity cost of the capital invested. Therefore, option B is the correct choice for EVA performance measures. Choices A and C are incorrect as fair market value of income and segment margin do not directly relate to EVA.

Economic Value Added EVA Performance Measures