Marginal analysis as an important tool management decision–making

Relevance of the research topic. In modern conditions, the task of making effective management decisions is becoming increasingly important for enterprises in the context of dynamic economic development. An important role in justifying management decisions is played by marginal analysis or break–even analysis. This analysis allows you to connect production activity, business activity with financial results, to determine the break–even point at which the company does not experience losses. The purpose of the research is: substantiation of the need for marginal analysis to ensure modeling of financial results, optimization of their size, implementation of cost management in order to increase the efficiency of economic activity of manufacturing enterprises. Research methods. Analysis, synthesis, induction, deduction, abstraction and generalization as generally logical methods of scientific knowledge are applied to justify the possibility of forming indicators of marginal income. The application of economic and mathematical methods became the basis for determining the compliance of the domestic system of income and expenditure analysis with management requirements. Research results. The article examines the necessity of conducting marginal analysis at enterprises in order to forecast financial results, based on the estimated state of expenses, as well as determining the volume of sales that ensures break–even. Field of application of results. In the field of economic sciences and in the practical activities of economic entities. Conclusions according to the article. It has been studied that the break–even analysis allows you to accurately substantiate the results for choosing a company development strategy, to identify the optimal proportions between variable and fixed costs, and to minimize business risks