Flashcards
EVA
Flashcards do conjunto (6)
- 1What is investment centera type of profit center;
where performance is measured by comparing the profits against the assets employed in earning it - 2Why focus on Profit alone in Controls might be an issue?If a company requires significant capital investment, we need to ensure that the company provides a satisfactory return on the capital employed;
- 3what are the two performance objectives of BU Managers1) Generate adequate profits from the resources at their disposal
2) Invest in additional resources only when the investment will produce an adequate return
(Conversely they should disinvest if the expected annual profits of any resource discounted at the company's required earnings rate are less than the cash that could be realized from its sale) - 4what are 2 ways of relating profits to assets employedEVA & ROI
- 5ROIROI = income
__________
Assets employed - 6EVAEVA = Net operating profit - Capital Charge
Informações
- Descrição
- ea MCS FlashCards sobre EVA, criado por Mukundhan Srinivasan em 22-07-2016.
- Criado por
- Mukundhan Srinivasan · jul 2016
- Atualizado
- 23 jul 2016
- Visualizações
- 3
- Avaliação
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