Like return on investment (ROI), economic value added (EVA) adjustments fail to sufficiently address the suboptimization problem.

Question

Quizplus · Accepted Answer

Both ROI and EVA focus on financial performance metrics that may not fully capture the broader strategic goals of an organization, potentially leading to decisions that optimize short-term financial results at the expense of long-term value creation.

Like Return on Investment (ROI), Economic Value Added (EVA) Adjustments