The Status And Function Of EVA In The Balanced Scorecard

The Balanced Scorecard (BSC) is a set of measure system. More precisely, it is a management system. BSC consists of four perspectives: financial, customer, internal.Business-process as well as learning and growth perspective. BSC changes the traditional convention that use accounting model as the unique measurment. Instead, BSC incorporate nonfinancial measurments which can sensitively predict the future sustainable growth while retaining the financial measurement. EVA is a critical measurement indicator in the financial perspective of BSC. Arithmetically, it is after-tax operating profits minus the appropriate capital charge for both debt and equity.