Aldrin A.

Cabangbang
BSA-4
What is profit? from accounting profit to Economic profit.
Accounting and economic profit are two crucial metrics for determining
how much a company makes. Financial health assessments and future
business decisions can be aided by these metrics for investors and
organizational leaders. The other is based on economic principles, while the
former uses accounting principles. Understanding the differences between the
two and how to calculate each could be useful when evaluating the
performance of companies, Economic profit is the profit a company makes
after subtracting expenses, costs and opportunity costs from total revenue.
opportunity cost is the financial impact a company receives for making one
economic choice over another. 

What are the performance measures that are most useful indicators of
how well a company is being managed?
Companies might use a variety of systems to measure the
effectiveness of a performance management strategy. Here are five methods
to consider when attempting to collect data or create a structure for measuring
performance management:
1. Numeric rating scales In performance management, professionals
can use a numeric rating to assign a point value for each performance
measurement.
2. Self-evaluations
Self-evaluation is a critical method of measuring performance.
This process involves creating objective criteria, which an
organization can use to determine how close it is to reaching its
performance measurements
Peer reviews Facilitating peer-reviews to assess performance
management provides a forum for the direct feedback of colleagues in the
design and implementation of performance management measures. Duties
and functions checklist Establishing a clear and authoritative
checklist of duties and functions ensures accountability and efficiency.
5. Performance management cohorts A cohort is a group of
professionals or organizations that have a common goal or trait. It may be
helpful to join a cohort of similar organizations in your industry when designing
a project management plan.How is it possible that companies are highly
profitable yet have negative returns? Explain.
Some ways to think about companies profit yet have negative returns
in terms of the cash flows statement a line-by-line explanation or reconciliation
of what happened to your cash during the period (which could be on a month,
quarter, year-to-date, or annual basis). you generate (or lose) cash from your
operations (income statement). Yes, that's definitely one of the components.
But it is not an exact one to one correlation. there are things included in your
income statement that have nothing to do with cash, such as depreciation and
amortization? These non-cash items included in your income statement are
adjusted by those amounts.

Secondly, you have working capital (current liabilities and current assets)
changes. Even though you made sales (included in your income statement),
that doesn't mean you collected all the cash related to them. Similarly, you
incurred expenses (included in your income statement), but that doesn't mean
you paid all of the related cash (i.e. accounts payable would represented the
unpaid portion of expenses incurred). So those types of items, among others,
appear on the cash flows statement as changes in working capital.

Thirdly, you have may have used (or received ) cash for things that do not
appear on your income statement. Paid 1million in capital expenditures to
build your store that hasn't even opened yet? Borrowed 2million in preparation
for new production equipment? Obviously, those balance sheet items (assets
and liabiltiies) affected whether cash went up or down, but had nothing to do
with your operations (income statement).