Difference between revisions of "Margin Analysis"
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| − | '''Marginal Analysis''' is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.<ref>Definition - What is Margin Analysis? [https://www.investopedia.com/terms/m/marginal-analysis.asp#:~:text=Marginal%20analysis%20is%20an%20examination,them%20maximize%20their%20potential%20profits. Investopedia]</ref> | + | '''Marginal Analysis''' is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.<ref>Definition - What is [[Margin]] Analysis? [https://www.investopedia.com/terms/m/marginal-analysis.asp#:~:text=Marginal%20analysis%20is%20an%20examination,them%20maximize%20their%20potential%20profits. Investopedia]</ref> |
Revision as of 16:58, 6 February 2021
Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.[1]
- ↑ Definition - What is Margin Analysis? Investopedia