What question did this study set out to answer?

The aim is to analyze how marginal analysis can enhance decision-making in budgeting by focusing on direct costs and expenses.

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April 18, 2026

Marginal Analysis of the Company's Budgeting Model

Key Points

The aim is to analyze how marginal analysis can enhance decision-making in budgeting by focusing on direct costs and expenses.
Examined the classification of costs as fixed and variable.
Analyzed marginal (contribution) analysis as a decision-making tool.
Utilized direct costs attributed to cost objects within the budgeting process.
Identified the importance of direct operating expenses in cost assessments.
Found that averaging data leads to suboptimal management decisions.
Highlighted the effectiveness of marginal analysis for performance evaluation.

Abstract

In determining an organization's financial and operating results, costs and expenses are typically classified as fixed and variable. In the absence of full cost allocation, management decisions are based on averaged data. This article examines the method of marginal (contribution) analysis for assessing company performance within the budgeting process, utilizing direct costs and expenses attributed to various cost objects, and incorporating direct operating expenses into the cost assessment of manufactured products and business activities.

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