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Define economic value added

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Q1. Define economic value added (EVA) and describe three ways a company can improve its EVA.

Q2. Companies increasingly use nonfinancial measures to supplement financial measures of performance. One of the most important areas of nonfinancial performance is customer service. The last decade has brought an increased focus on the customer, and this focus is reflected in many companies' management control systems, where companies use "customer-value metrics." That is, they develop measures that monitor how well the company is meeting its customers' interests. What customer-value metrics might a company such as Volvo, the Swedish automobile company, use in its management control system?

Reference no: EM131785047

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