Guest post by
Shruti Jain, Senior Associate Consultant, Infosys
Measuring profitability and costs are fundamental to the planning and strategizing of any business. The key question here is what is profitability modeling and how does it helps in formation of business strategies?
Profitability models can be used for evaluating investments in new projects, new products, and impact of new taxation laws or new regulations introduced in the business environment. It can be used for what-if analysis of evolving company strategies.