Why Are Accounting Distortions Removed When Evaluating Performance Using EVA

Multiple Choice

Why are accounting distortions removed when evaluating performance using EVA?

A) To remove amounts that are a free source of financing
B) To remove amounts that divisional managers are unable to control
C) To remove the costs of assets that must be capitalized under GAAP
D) To encourage managers to spend money on elements that will benefit the company in the long run