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Implementing Customer, Product, and Channel Profitability Analytics

Source: SAP
To be reliable, cost and profitability analysis must be underpinned with an activity-driven view of how an organization’s products, customers, and channels consume resources and incur costs. However, activity-based costing (ABC) contributes to more reliable customer, product, and channel profitability analysis. In fact, without this foundation, such analyses are critically flawed, and can result in inappropriate decisions and choices.


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