Discuss economic value added

Reference no: EM131491428

Question: 1. Why are LIFO accounting and the expensing of R&D expenditures referred to as conservative accounting policies?

2. Explain how intrinsic price-to-book (P/B) ratios are affected by conservative accounting (such as expensing R&D expenditures).

3. Consultants talk of"economic profit," or "economic value added." What is it? Can it be observed?

Reference no: EM131491428

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