Profitability analysis takes a financial perspective, while productivity analysis is more managerial oriented.

Question

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Profitability analysis focuses on the financial performance of a company and its ability to generate profit. Productivity analysis, on the other hand, focuses on the efficiency of the company's operations and management of resources. Therefore, profitability analysis is more financial in nature, while productivity analysis is more managerial or operational.

Profitability Analysis Takes a Financial Perspective, While Productivity Analysis Is