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December 2020 » How to Apply ‘Sticky Costs’ in...
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Qianhua “Q” Ling, PhD, CPA (China, inactive), CMA
Many CPA firms report that advisory and consulting operations have become their fastest-growing segments due to high client demand—and high margins—for these services. IBISWorld (https://www.ibisworld.com/), a business research company, predicts that advisory services will be the focus of CPA firms over the next five years. Clients of these services frequently request support in profitability analyses, earnings estimates, and firm value assessments. The key to satisfying these requests is to calculate profitability, which requires a thorough understanding of the relationship between sales and costs.
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