Process for determining object level profitability

A relational computation process measuring an individual or incremental decisions impact on profit, or fundamental object profitability, elemental to multiple business dimensions consistent with independently calculated total profit, the process comprising the steps of:

• providing an electronic relational database;
• preparing information to be accessed electronically through the relational database management system by extracting, conditioning and loading object attribute values, financial statement attribute values and event attribute values into the relational database;
• establishing, in the relational database, rules for processing the prepared information;
• in the relational database, simultaneously and independently calculating in parallel marginal profit measures using the established rules, including:
• a) marginal profit measures associated with balance sheet resources;
• b) marginal measures of non-balanced oriented revenues;
• c) marginal cost measures;
• or
• d) marginal measures of expected costs or revenues;
• in the relational database, using the calculated marginal profit measures to calculate a fully absorbed profit adjustment value for each fundamental object being measured, including the step of calculating the value for an apportioned profit value adjustment for all non-object related resource consumption;
• and
• combining the at least one marginal value of profit and the fully absorbed profit adjustment value to create a measure for fundamental object profitability.

A relational computation process measuring an individual or incremental decisions impact on profit, or fundamental object profitability, elemental to multiple business dimensions consistent with independently calculated total profit, the process comprising the steps of:

• providing an electronic structured query language relational database;
• preparing information to be accessed electronically through the relational database management system by extracting, conditioning and loading object attribute values, financial statement attribute values and event attribute values into the relational database;
• calculating opportunity values of funds used or supplied by each object being measured;
• establishing, in the relational database, rules for processing the prepared information, including providing the information necessary to select objects, and performing the correct profit calculus;
• in the relational database, simultaneously and independently calculating in parallel marginal profit measures using the established rules, including:
• a) marginal profit measures associated with balance sheet resources;
• b) marginal measures of non-balanced oriented revenues;
• c) marginal cost measures;
• and
• d) marginal measures of expected costs or revenues or revenues;
• in the relational database, using the calculated marginal profit measures to calculate a fully absorbed profit adjustment value for each fundamental object being measured, including the step of calculating the value for an apportioned profit value adjustment for all non-object related resource consumption;
• combining the at least one marginal value of profit and the fully absorbed profit adjustment value to create a measure for fundamental object profitability;
• and
• adjusting the measure for object level profitability for taxes and/or object economic value.

A relational computation process measuring an individual or incremental decisions impact on profit, or fundamental object profitability, elemental to multiple business dimensions consistent with independently calculated total profit, the process comprising the steps of:

• providing an electronic structured query language relational database;
• preparing information to be accessed electronically through the relational database management system by extracting, conditioning and loading object attribute values, financial statement attribute values and event attribute values into the relational database;
• establishing, in the relational database, rules for processing the prepared information, including providing the information necessary to select objects, and performing the correct profit calculus;
• in the relational database, simultaneously and independently calculating in parallel marginal profit measures using the established rules, including:
• e) marginal profit measures associated with balance sheet resources;
• f) marginal measures of non-balanced oriented revenues;
• g) marginal cost measures;
• h) marginal measures of expected costs or revenues;
• calculating the marginal profit measures;
• and
• i) fully absorbed indirect expense.