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A shadow P&L, or shadow profit and loss statement, is a financial tool used by businesses to estimate or simulate the potential profitability of different scenarios or decisions without affecting the official accounting records. It helps management visualize the impact of various strategies, costs, or revenue streams on profitability. This analysis is often used for decision-making, forecasting, and assessing risks in business operations. Essentially, it provides insights into financial performance while allowing for flexibility and experimentation.

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3d ago

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