Contribution analysis in private teaching institutions and a practice

In today's market conditions, it is up to the right and timely decision makers to lower their costs and increase profits and ensure competitive advantage. In order for the right decisions to be made, businesses need management accounting systems that produce accurate information. In this study, the cost structure of an educational institution which has decided to stop its activities in February of 2015 has been examined and cost analysis of the four different departments it has been serving has been performed. In order to reach the results of the analysis, firstly fixed and variable costs of the operator are determined and then fixed costs are distributed to all departments by using appropriate distribution keys. After this process, the cost functions of all departments are created according to the accounting technique and breakeven point analyzes are carried out and the cost data obtained are used to evaluate different decision options. The financial and non-financial factors underlying the decision to discontinue operations are summarized. Keywords: Administrative Accounting Systems, Cost Structure, Cost Analysis, Cost Function. Breakeven Analysis.