Notes On Economic Value And Performance Measure

2771 Words12 Pages
Topics Page no.
Introduction 2
Aim & Objective 2
Return On Investment 3
Economic Value Added 3
ROI vs. EVA 3
Performance Measure in Organization 4
Overcoming Limitations 5
Marginal Cost 6
Absorption Cost 6
Activity Based Cost 7
Discussion 7


As the world economy is growing with different new company types and services, pressure to managers are seems to be rising. Back in the days owners/stake holders used to make decision for the organization, but now a days as the industry is growing and the workload has been distributed according to employee’s skills. Different department has been established in an organization and even every department managers have to take critical decisions in a glance to justify their business future and Probability. And to make the right decision, there are various kinds of measures that can be applied to the organization to see its growth. Especially in term of investment it is really important to go for the right investment, otherwise the investing capital can waste which is neither good for the Organization nor the managers taking decision upon. So critically evaluate the business facts is a must for both the managers’ career and the company future. So using the measures on right time and right place to make critical decision on short and long term, it is really important to know
Get Access