Economic Value Added - Integrating EVA and PBC

Integrating EVA and PBC

Recently, Mocciaro Li Destri, Picone & Minà (2012) proposed a performance and cost measurement system that integrates the EVA criteria with Process Based Costing (PBC). The EVA-PBC methodology allows us to implement the EVA management logic non only at the firm level, but also at lower levels of the organization. EVA-PBC methodology plays an interesting role in bringing strategy back into financial performance measures.