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ABC formula to increase profitability

As companies grow their customers and diversify their services, it is imperative to assess the business impact of initiatives and focus on the profitability of operations. Profitability analysis provides a proven methodology to enhance profitability and shareholder value. However, profitability data is only as accurate as the underlying information.

An expert discusses how profitability analysis based on Activity-Based Costing (ABC) enables companies to become more responsive and profitable.

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Why do you need profitability analysis? (part 2)

What are the prerequisites for profitability analysis as an effective decision-making tool?
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How can IT help in implementing activity-based costing? (part 1)

Activity-Based Costing (ABC) mitigates the risk of improper decisions due to sub-standard information. The maturity and range of off-the-shelf ABC software strengthen the business case to leverage IT for ABC.
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Our expert

Vivek Madhav, Consultant, Enterprise Solutions, Infosys Limited

Vivek Madhav, Consultant, Enterprise Solutions, Infosys Limited

Vivek is a Senior Consultant for SAP Business Intelligence and Enterprise Performance Management (EPM). He is an SAP-certified BW consultant with over eight years of experience in providing analytics solution in finance and costing. He is also part of SAP EPM Center of Excellence group in Infosys and leads the profitability and cost analysis track. He can be reached at

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