If the key financial metrics for creating corporate value relate to costs, capital charges and consumption, and profitability, then the corporate capabilities or competencies required to drive those metrics must include controlling supply chain costs, managing supply chain cycle time, and optimizing responsiveness to the marketplace.
percentage of completion accounting
+ D E/V = percentage of financing that is equity D/V = percentage of financing that is debt Tc = the corporate tax rate The numerator for RONA is profit, so RONA is heavily influenced by revenue and costs. Therefore, managing both revenue and costs is critical to overall performance. Taking a very simplistic point of view, total costs include both Cost of Goods Sold (COGS = the costs of inputs, adding value through the transformation process, and delivering the product/service bundle) and Sales, General