Which performance measure uses after-tax operating income and the actual cost of capital employed?
A) margin
B) residual income
C) return on investment (ROI)
D) economic value added (EVA)

Question

Quizplus · Accepted Answer

Economic value added (EVA) uses after-tax operating income and the actual cost of capital employed. EVA provides a more accurate picture of a company's profitability and performance than traditional measures like ROI, as it takes into account the cost of capital used to generate profits.

Which Performance Measure Uses After-Tax Operating Income and the Actual