BUSINESS VALUE CREATED BY MANAGEMENT ACCOUNTING
CBU International Conference Proceedings, 2018, vol. 6, issue 0, 76-80
Porter stated in his value chain concept that business support activities are contributing to the value creation process of a business organization. In the “classical view” business support activities are considered as indirect productive and not having a clear and direct contribution to the business organization value chain. The information age has enabled and leveraged business support activities to become decisive contributors to the value creation process of any business. Can this value contribution be somehow determined or quantified? Management accounting is a classical business support activity that contributes to the business organization value chain. Through usage of value management and value driven performance indicators, the value contribution can be determined and quantified. The present paper is highlighting one possible alternative to determine the value contribution by using indicators like economic value added and economic profit. The value-based approach is putting indirect productive business activities into a new position, the one of a clear and important business value creator that cannot be ignored in the 21st century, a century driven by data, a nd information and knowledge that can sustain a decisive sustainable competitive advantage.
Keywords: Valuemanagement accounting; economic value; EVA; economic profit (search for similar items in EconPapers)
JEL-codes: D46 L21 M21 (search for similar items in EconPapers)
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Working Paper: Business value created by management accounting (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:aad:iseicj:v:6:y:2018:i:0:p:76-80
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