Profitability control in a business

[Mastergp]

It is of great importance that an organization endeavors to determine its profitability in terms of its various products, customers, channel, territories, etc. A recent research shows following data.
Information derived from profitability analysis goes a long way in determining an organization's future. Two important profits analyzing tools however shall be considered :

(1)Financial analysis and
(2)cost volume profit analysis

Financial analysis /control:
The ultimate survival of organization is both private and public sectors is dictated largely by how proficiency funds and acquired and managed. And there are some financial control techniques they: cash management, cost control and financial ratios.

Cost volume and profit analysis :
This seeks to examine cost and revenue with a views to recognizing profit. While this is fairly easy in the ease manufacturing subsector, it is not so for marketing. The associated cost for marketing activities cannot be easily determine. As observed by researcher the ultimate output of marketing is a sale, but it difficult to determine the allocation of marketing processes.

 

[niche]

In some countries, especially in the internet sector, the profitability is controlled by the government agencies, especially for those who are working at home. People doing computer or online work at home, do not get any orders at all, so their revenues and income is very low, however, hard they may work , or however skilled they may be. The government agencies are allegedly giving the fake excuse of national security to steal all the orders from people working at home.