Open AccessVolume 3
Author(s) -
Bruce K. Bell
Publication year - 2012
Publication title -
journal of diabetes investigation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.089
H-Index - 50
eISSN - 2040-1124
pISSN - 2040-1116
DOI - 10.1111/jdi.12039
Subject(s) - citation , medicine , subject (documents) , volume (thermodynamics) , information retrieval , library science , computer science , quantum mechanics , physics
The demands of an ever-changing business world and the expectations of investors have forced companies to focus on the creation of shareholder value. Economic Value Added (EVA) is a measure of economic wealth creation that was introduced by Stern, Stewart, & Co. in 1982. If used properly, EVA can help managers evaluate how various costs affect financial performance, and it can assist them in making good decisions. By itself, EVA is just one metric among a large number of performance tools used by management. However, when it is used with the effective Balanced Scorecard and Activity-Based Costing, EVA can become a valuable resource for management’s decision-making. Management must be trained to use these three performance tools cohesively in order for the implementation of EVA