Question Business Management Q Profitability/pricing analysis is a key area for any company. ABM assists a company in analyzing the costs and benefits of products and processes in both the "as is" and post- improvement "to be" scenarios. ABM also sup- ports prelaunch analysis and improvement of product profitability. Areas in which ABM has proven useful in adopting organizations include: G product/service profitability analysis; G business process reengineering; G distribution channel profitability analysis; G market segment profitability analysis; and G target and life-cycle costing. ABM is used in a target costing program at AT&T Paradyne to project future activity and product costs. An ABM target costing process was estab- lished for all new and major existing products to facilitate life-cycle cost management. The target costing process begins with specified features and functionality that can be sold to achieve a significant market position. From there, product and manufacturing associate teams interlock on a targeted product cost that is a buildup of mate- rial and activity cost