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Conversion Surplus as a Measure of Value
Author(s) -
William A. Duerr,
S. Guttenberg
Publication year - 1968
Publication title -
the forestry chronicle
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.335
H-Index - 49
eISSN - 1499-9315
pISSN - 0015-7546
DOI - 10.5558/tfc44024-4
Subject(s) - stocking , economic surplus , revenue , valuation (finance) , measure (data warehouse) , economics , value (mathematics) , microeconomics , business , agricultural science , mathematics , forestry , finance , environmental science , welfare , statistics , computer science , database , market economy , geography
Conversion surplus is a measure of a producer's prospective gain or loss from converting goods-in-process (e.g., standing timber, logs) to end products. It is useful as an index to merchantability and for purposes of comparative valuation, as in calculating financial maturity of a tree or the best timber stocking or rotation. It considers the costs and revenues which are variable with (i.e., relevant to) the management decision, and it considers them for the firm as a whole.

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