One Caveat of using EVA as a measure of performance measurement is, managers:
A) may not have incentive to work hard.
B) may overstate earnings.
C) may cut back production.
D) none of these.

Name: One Caveat of using EVA as a measure of performance measurement is, managers: A) may not have incentive to work hard. B) may overstate earnings. C) may cut back production. D) none of these.
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Question

Quizplus · Accepted Answer

Managers may overstate earnings to improve EVA, as it is based on accounting profits.

One Caveat of Using EVA as a Measure of Performance