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

Analyzes gender difference in communication organization, 1.Tannen analyzes...

1.Tannen analyzes gender differences in communication within organizations. Does her analysis resonate in your experience? Have gender-specific differences in communication become

Strategic plan, To maximise the potential of our business I would like you ...

To maximise the potential of our business I would like you to prepare a strategic plan, specifically I would like the plan to incorporate a mission statement, a SWOT analysis, a

Case study report, what is equivalent INR amount stand for

what is equivalent INR amount stand for

Restructuring, What is the difference between restructuring, Reengineering ...

What is the difference between restructuring, Reengineering and Development

Describe the elements of external environment analysis, Question 1: (a)...

Question 1: (a) What is diversification? Distinguish between the different types of diversification. (b) Give the advantages and disadvantages of these types of diversifica

Explain two-part tariff system, Q. Explain Two-part tariff system? With...

Q. Explain Two-part tariff system? With a two-part tariff system the buyer is charged: A transfer price equal to the seller's variable (marginal) cost for each unit sold

Costco''s case, what makes costco''s a distnghished and well reputed retai...

what makes costco''s a distnghished and well reputed retail brand?

Beyond budgeting, A philosophy that believes traditional or conventional bu...

A philosophy that believes traditional or conventional budgeting methods are of little use to management, however beyond budgeting does not believe that budgeting within organisati

Introduction to bread talk, Strategic management is a systematic analysis o...

Strategic management is a systematic analysis of the internal and external factors to develop strategic actions for organizational goals (Dobson & Richards, 2004). Bread Talk is a

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

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages