Under the Ittner and Larcker management framework which of these is not a limitation of using Economic Value Added (EVA) as a measure of value added by management?
A) It is a measure of the past
B) It is based on short-term performance
C) EVA can only be calculated for stock exchange listed companies.
D) None of the above, i.e. all are limitations

Question

Quizplus · Accepted Answer

One of the limitations of using EVA as a measure of value added by management is that it can only be calculated for companies that are listed on the stock exchange. The other limitations mentioned in the question, i.e. it is a measure of the past and based on short-term performance, are both valid limitations according to the Ittner and Larcker management framework.

Under the Ittner and Larcker Management Framework Which of These