Question 6

Economic value added (EVA) has been proposed by some as a means of using accounting-based measures while reducing the negative aspects associated with using accounting-based performance evaluation measures. However, like all things in life trade offs exist. Which of the following explains a way that EVA is not as beneficial for performance evaluation relative to unmodified accounting measures?

	A.	EVA is less timely.
	B.	EVA results in less congruence in long-term behavior between managers and shareholders.
	C.	EVA is less objective.
	D.	EVA is less controllable than ROI.