Profitability and Cost Management Shared Interest Group

Getting the Right Level of Detail in Profitability & Cost Models 

03-12-2026 04:27 AM

One of the biggest mistakes in profitability and cost management initiatives is assuming that more detail leads to better decisions.

In reality, the opposite often happens.

In a recent case documented in this whitepaper, a regional bank reduced its profitability model from 420 activities to just 52, cut processing time from 12 days to 2.5 days, and dramatically improved decision adoption by managers.

The lesson:
Better design beats more data.

If you are working with ABC/M, TDABC, or multi-dimensional profitability models, this guide explains how to calibrate the right level of granularity, drivers, and cost objects.

The paper was published by the IMA Profitability & Cost Management Shared Interest Group.

If you are interested in profitability analytics, cost management, and data-driven finance, consider joining the SIG and being part of the conversation.

#IMA #CostManagement #ProfitabilityAnalytics #EPM #StrategicFinance


#ABC
#Profitability

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IMA_PCM_SIG_Whitepaper_Right_Level_of_Detail_2026_v3.pdf   631 KB   1 version
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