Profitability analysis in UK organizations: An exploratory study

Colin Drury and Mike Tayles

The British Accounting Review, 2006, vol. 38, issue 4, 405-425

Abstract: Recent research into management accounting practices suggests that companies are now placing considerable emphasis on profitability analysis and consider it to be one of the most important management accounting practices. There is however little recent empirical research relating to the content and role of profitability analysis in companies. This paper will address this omission and report the findings derived from a survey of UK companies relating to information that is contained in profitability reporting, generated for managing the existing mix of a firm's activities. In particular, it focuses on the nature, content and role of profitability analysis carrying out some exploratory analysis and testing various propositions to explain the divergence in observed practices.

Keywords: Probability analysis; Pricing; Cost system complexity; Contribution; Cause-and-effect indirect costs (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:38:y:2006:i:4:p:405-425

DOI: 10.1016/j.bar.2006.05.003

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