Value-based management refers to:

Question

Quizplus · Accepted Answer

Value-based management is a framework for making key business decisions that add economic value to the business. It emphasizes the creation of shareholder value through strategic planning, performance management, and resource allocation. It involves using financial metrics like Economic Value Added (EVA) to evaluate the value created by different business activities and to guide decision-making. However, it is broader than just applying EVA to all business decisions (Option A) or using discounted cash flows to estimate the imputed cost of capital (Option D). While customer value is important in value-based management, it is not the only focus (Option C).

Value-Based Management Refers To