Which of the following is an advantage of applying the economic value creation perspective to assess a firm's performance?
A) When the need for "hard numbers" arises, managers and analysts rely on economic value creation perspective to measure competitive advantage.
B) In economic value perspective, analysts not only consider historical costs, but also opportunity costs.
C) Arriving at the economic value created is easy because determining the value of a good in the eyes of consumers is a simple task.
D) It is the most efficient tool for assessing corporate-level competitive advantage of highly diversified companies with large product portfolios.

Question

Quizplus · Accepted Answer

Rather than merely relying on historical costs, as done when taking the perspective of accounting profitability, in the economic value creation perspective, all costs, including opportunity costs, must be considered.

Which of the Following Is an Advantage of Applying the Economic