EXCESS EARNINGS METHOD Definition

Bookmark and Share

EXCESS EARNINGS METHOD is a specific way of determining a value indication of a business, business ownership interest, or security determined as the sum of a) the value of the assets obtained by capitalizing excess earnings and b) the value of the selected asset base. Also frequently used to value intangible assets.

Learn new Accounting Terms

SG&A refers to the indirect overhead costs contained within the Sales, General and Administrative expense/cost categories. Generally, SG&A expenses of <30% are exceptional, while SG&A approaching 100% indicates a highly competitive industry. Consistency of SG&A is key.

COST AVOIDANCE is an action taken in the present designed to decrease costs in the future.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.