Methods of Marginal Analysis Using at Mining and Processing Enterprises

Abstract

Objective. The objective of the article is to adapt the methods of marginal profit analysis to the conditions of industrial enterprises with a multi-stage production process operation. Methods. The results of the study are obtained applying general and special research methods (of comparison, generalization, typology, abstraction, theoretical and mathematical modeling), as well as systematic and logical approaches related to the implementation of the theory of cost and profit management. Results. Methodical approaches to the use of marginal profit analysis for enterprises with dif­ferent results and multi-stage production process are substantiated. Domestic andforeign methods of factor assessment of profitability are studied and their comparison is carried out as for the ad­vantages and disadvantages for the conditions of industrial enterprises. Based on the concept of the system «cost-output-profit» the method of marginal analysis ofprofits for the purposes of cal­culating the cost ofproduction of mining and processing enterprises, which distinguishes it from the existing methods for single-product and multi-product industries is adapted. In the process of carrying out the relevant mathematical transformations, a formula for calculating the cost ofpro­duction for the relevant production redistributions of the mining and processing enterprise and a universal formula for determining the price of the final product based on cost management system «direct costing» is derived. It is proved that the proposed conceptual model of the methodology of marginal profit analysis will provide opportunities for industrial enterprises, including mining and processing enterprises and their structural units, to increase the efficiency of cost and profit management.