Simple as it may sound, the profitability of your business is the sum of the profitability of the individual services you offer.

Sound management decisions rely on knowledge of how individual services and market segments are performing – which are profitable and which are… well, not so profitable.

This requires a full understanding of which costs are caused by each service, or customer group.

Such microeconomic analysis is often not possible from standard financial accounting systems. Shared or common costs are often not allocated to their correct cause, or allocated arbitrarily, skewing accurate analysis.

See, for example, our sample case study.

By analysing cost causation and business processes, and with the assistance of state-of-the art software, including (where necessary) OLAP and Activity Based Costing applications, Affirmative Business Solutions can guide you through these challenging issues and facilitate intelligent decision-making.

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