Measuring, Indeed Measuring Period Profit and CPP-Accounting

18 Pages Posted: 16 Jan 2003 Last revised: 10 Jun 2016

Date Written: December 7, 2002


To measure the period profit of a company is not an economic problem but a technical one. It is a measuring problem. In order to be able to measure, one first has to gauge.

The core of measuring is the notion 'calibration', including gauging. In this paper, the words 'gauging' and 'measuring' are distinguished from each other. In this context 'gauging' means everything that has to be done to establish values and standards prior to 'measuring' the results. Calibration is partly (in popular words) converting reference Y by means of reference X, the accepted measurement unit. In technical science, all references are to trace back to the SI-units (Systeme International d'Unites). Gauging is the legally adopted means of calibration plus certifying of an instrument. Calibration is the whole procedure, what and how exactly; in technical science, these detailed procedures have been laid down in internationally accepted protocols.

The problem of profit measurement consists of gauging and measuring. Measuring starts with gauging. Without gauging, there can be no measuring. The gauging part results in the necessary values and standards: data, input-parameters which are needed to measure. The gauging part, establishing all values and standards, is the first part of the problem of profit measurement. What are the data? This question must first be answered fully. Without all the answers to all the gauging questions one just cannot make a start. Measuring is gathering and compiling the data into the measuring result i.e. the ultimate profit figure. The very heart of the subject matter is on the one hand the impact of the starting data and on the other compilation.

CPP-accounting, which is changing the measuring-staff, is in flat contradiction with the basic need in order to measure: a well-defined measuring-staff, a fixed unit.

Keywords: Period Profit Measurement, CPP-accounting

JEL Classification: M40, M41, M46

Suggested Citation

Jacobs, Jan F., Measuring, Indeed Measuring Period Profit and CPP-Accounting (December 7, 2002). Available at SSRN: or

Jan F. Jacobs (Contact Author)

Independent ( email )

Beethovenlaan 36
Enschede, Overijssel 7522 HJ

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