The key difference between residual income and economic value added is that EVA a. uses the actual
Question:
The key difference between residual income and economic value added is that EVA
a. uses the actual cost of capital for the company rather than a minimum required cost of capital.
b. uses the minimum required cost of capital for a company rather than the actual percentage cost of capital.
c. is a ratio rather than an absolute dollar amount.
d. cannot be negative.
e. There is no difference between residual income and EVA.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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