Which financial control system measures the stock market's estimate of the value of a company's past and projected capital investment projects?
A) Market value-added
B) Economic value-added
C) System governance
D) Activity-based costing
E) Corporate governance

Question

Quizplus · Accepted Answer

Market value-added is a financial control system that measures a company’s value based on the stock market’s perception of a company’s current and future performance, which is derived from its past and projected capital investment projects. Economic value-added measures the true economic profit of a company after deducting the cost of capital, while system governance refers to the policies, procedures, and systems in place to ensure effective management of an organization. Activity-based costing is a cost accounting method that identifies the costs associated with specific activities, while corporate governance refers to the framework of rules, practices, and processes by which a company is directed and controlled.

Which Financial Control System Measures the Stock Market's Estimate of the Value