For Accounting & Finance Professionals

There have been significant advances in the field of managerial costing over the past 30 years, but the adoption rate of these new costing approaches has been low.  Most companies continue to uses traditional cost accounting approaches developed in the early to mid-20th century. Studies by the IMA and others show that most organizations are dissatisfied with their cost information, but are not motivated to change.   Companies’ accounting and finance functions largely rely on cost accounting methods that support financial accounting’s external reporting function, but which are inadequate or inappropriate to support decision making by internal users. Evidence suggests that accountants often aren’t sure how to implement more effective managerial costing systems. As a result, they struggle to provide executives, line managers, and other employees with the costing information they need for decision making.

The Profitability Analytics Center of Excellence aspires to help management accountants and the broader business community recognize and understand the need, the benefits, and a path forward for improving cost and revenue information for internal decision support.  This website provides resources to help accounting and finance professionals better understand and address the strategic needs of their organization. It provides:

  1. An overview of Profitability Analytics

  2. A Conceptual Framework for Managerial Costing;

  3. Examples of application of cost and revenue management principles and concepts; and

  4. Tools for organizations to:

    1. Assess the current state of their internal costing and revenue management practices for their capability level to provide high-quality operational modeling information;

    2. Determine and define the nature of internal costing needed based on an organization’s economic situation and strategic objectives; and

    3. Assess potential internal costing methods and solutions to determine a fit with an organization’s needs.


Want to Know More?

Learn How the Use of Information Prepared for External Financial Reporting Purposes can Lead to Financial Failure


Ready to Get Started?

Use our Quick Assessment Tool to Gauge the Appropriateness of you Managerial Costing

Use our Costing Maturity Evaluation to Assess Your Organization’s Costing Maturity


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