How to Find Your Economic Profits

28 Pages Posted: 28 Feb 2004 Last revised: 28 Sep 2012

Date Written: March 2004

Abstract

Economic performance measures can have powerful advantages over traditional accounting metrics, but require thoughtful interpretation to avoid classic pitfalls:

- Costing for Capital - EVA-based Throughput Accounting - Joint & Common Costs - Lean, Six Sigma, and Economic Profit - Incorporating Value into the Profit Equation

Keywords: EVA, Economic Profit, Performance Measurement, Value Based Management, Profitability Analysis

JEL Classification: G3, G30

Suggested Citation

Pettit, Justin, How to Find Your Economic Profits (March 2004). Available at SSRN: https://ssrn.com/abstract=505222

Justin Pettit (Contact Author)

Independent ( email )

United States
9146092011 (Phone)