Limitations of economic value added, Strategic Management

Assignment Help:

Limitations of economic value added (EVA)

- Not well understood by users of accounts.

- Divisions of different sizes cannot be relatively compared.

Similarities of EVA and RI

Both are absolute rather than relative measures.
Both deduct a finance charge for the cost of capital used for a division.
Both exclude interest payments in arriving at profit due to using a notional interest charge instead e.g. the cost of capital.

Related Discussions:- Limitations of economic value added

What are the benefits of cause and effect diagram, Question 1: a. List ...

Question 1: a. List out Dr. Edward Deming's contribution to Quality. b. Show the eight dimensions of Quality. Dr. Edward Deming's contribution to Quality. Eight dimen

Open group architecture framework, Discuss the following quotation and ...

Discuss the following quotation and please provide examples. Enterprise Architecture is an organising logic for managing change within an Information Systems environ

Delta products case instructions, Here is the "Delta Products" case for Gra...

Here is the "Delta Products" case for Graduate Operations. You need to determine the number of hours for Mike's and Nikki's plan. To do this you need to compute the number of hours

Make a histogram and obtain descriptive statistics, For this question you w...

For this question you will analyse box office receipt data for two movies: Harry Potter 1: Sorcerer's Stone and Pirates of the Caribbean 1: Curse of the Black Pearl . Go

Evaluate total shareholder return, Q. Evaluate Total shareholder return? ...

Q. Evaluate Total shareholder return? Total shareholder return (TSR) TSR = {(Dividend per share + Growth in share price) / (Market share price at the start of the period)

Diffusion is, The amount and pace of market adoption.

The amount and pace of market adoption.

Controlling subsidiaries, Controlling subsidiaries Mission stateme...

Controlling subsidiaries Mission statement, goals and objectives. Performance measurement systems e.g. financial ratios and multidimensional frameworks. Systems

What are the four types of strategic control, QUESTION 1 The most impor...

QUESTION 1 The most important purpose of strategic control is to help Top Management achieve organizational goals through monitoring and evaluating the strategic management pro

Assignment, Present a real life case study of the concept that you chose in...

Present a real life case study of the concept that you chose in Part One ‘in action’. You can use your own organisation or an organisation of your choice – we recommend you use an

Evaluating the performance of divisions, Q. Evaluating the performance of d...

Q. Evaluating the performance of divisions? The controllability principle is concerned with assessing performance based upon measures that can be controlled only by a manager a

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages