What is profitability control

Question

What do you mean by the term profitability control?

Answer 1

The Profitability control is a process of monitoring the sales made, gains earned and expenses incurred through a company. The relative gain earning capacity of the firm’s products and consumer groups can be recognized through profitability control. At times surprisingly, it might be determine by companies how a small fraction of their products and even customers really account for an important percentage of the company’s gains. It can be accomplished via profitability control. Sometimes if the companies earn excess profits, then these profits might even be ploughed back or reinvested. It as well forms the part of profitability control.