Tools For Monitoring Performance (cont.) Financial Controls (cont. Traditional Financial Controls Measures (cont.) budgets provide quantitative standards against which to measure and compare resource consumption Other Financial Control Measures-increasing popularity Economic Value Added (EVA)-economic value created with the firm's assets less any capital investments made by the firm in its assets Market Vallue Added (MVA)-stock market's estimate of the value of the firm's past and expected capital investment projects ©Prentice Hall,2002 20-12 Tools For Monitoring Performance (cont.) Financial Controls (cont.) – Traditional Financial Controls Measures (cont.) • budgets provide quantitative standards against which to measure and compare resource consumption – Other Financial Control Measures - increasing popularity • Economic Value Added (EVA) - economic value created with the firm’s assets less any capital investments made by the firm in its assets • Market Value Added (MVA) - stock market’s estimate of the value of the firm’s past and expected capital investment projects © Prentice Hall, 2002 20-12