What is 'demand-driven profitability' in SAP EPM-IM-FPL - EPM IM Flying Profit&Loss (Leopard)?

demand-driven profitability - Overview

• Component: EPM-IM-FPL

• Component Name: EPM IM Flying Profit&Loss (Leopard)

• Description: A method of calculating profitability that apportions indirect costs and incomes to cost objects based on their consumption of resources.

demand-driven profitability - Details

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  Key Concepts:
  Demand-driven profitability is a concept used in SAP's Enterprise Performance Management (EPM) Information Management (IM) Flying Profit & Loss (Leopard) component. It is a method of analyzing profitability by taking into account the demand for a product or service, as well as the cost of providing it. This allows businesses to better understand their profitability and make more informed decisions about pricing and production.
  
  How to use it:
  The demand-driven profitability concept can be used to analyze the profitability of a product or service by taking into account the demand for it, as well as the cost of providing it. This analysis can be used to determine the optimal pricing and production levels for a product or service, as well as to identify areas where costs can be reduced.
  
  Tips & Tricks:
  When using demand-driven profitability analysis, it is important to consider both the demand for a product or service and the cost of providing it. Additionally, it is important to consider other factors such as market trends and customer preferences when making decisions about pricing and production levels.
  
  Related Information:
  Demand-driven profitability is closely related to other concepts such as cost-benefit analysis and activity-based costing. Additionally, it is often used in conjunction with other methods of analysis such as financial forecasting and market research.