Abstract:

The practical application of the CVP model for a long period of time in the direct cost system made it possible to define the complexity and the low reliability of the separation of costs into fixed and variable ones resulting from it as the main drawback of the model. To eliminate this, an attempt was made to propose a model that would eliminate the time-consuming and not always correct procedure for dividing the costs for fixed and variables. In this regard, the goal of the study is: to develop an economic and mathematical model that could include absolute characteristics of the economic activity of an enterprise taking into account the existing national taxation system. The tasks of formalizing the national taxation system were solved to achieve this goal, and restrictions were imposed on the ownership of the property used for making profit. A cost management model is developed as a result of the studies carried out in which the fixed and variable costs are replaced by the company's expenses related to the payment for services of third-party organizations and the payment for labor of employees. This approach significantly expanded the scope of the break-even model, for example, to assess the budget efficiency of public capital investments, as well as when assessing the impact of entrepreneurial activity on the volume of the consumer market.