Economic value added (EVA)is so important because it ____.
A)demonstrates the importance of a business or subset of a business to customers
B)makes managers at all levels pay much closer attention to how they run their segment of the business
C)causes managers and workers to maintain the status quo
D)determines if a business or unit of a business is a star, question mark, cash cow, or dog and the necessary action to follow
E)is an improved form of the balanced scorecard approach to control

Question

Quizplus · Accepted Answer

EVA is important because it encourages managers to focus on efficient capital use and value creation, aligning their actions with shareholder interests.

Economic Value Added (EVA)is So Important Because It ____