Peculiarities of marginal analysis in decision-making

Abstract

The article describes the features of the use of marginal analysis to make effective management
decisions, presents the main features and stages of marginal analysis. Margin analysis helps to trace the
relationship between such important economic indicators such as costs, production volume and profits,
it is a key factor in the decision of many management decisions. For operational decision-making on the
normalization of the financial condition of the organization is necessary to organize separate accounting
of fixed and variable costs for product types and for the whole organization. This creates the prerequisites
for long-term analysis of the development of different options for profit. The world economic practice is
considered to be cost control system that integrates accounting, analytical and managerial procedures.
Marginal analysis allows management or managers of organizations to reliably estimate the current situation
and prospects.