High-School Management Using Break-Even Analysis Approach

Within this research article, we tried to adopt the existing methods of break-even analysis (applicable for modern enterprises) to the methods of managing higher school institutions. The urgent need for this tool is based on the crisis events in the universities’ economy, on the annual shortage of student contingent caused by the demographic situation of the country. The authors suggest the effective usage of the multi-component break-even analysis, as the modern universities perform the wide range of educational services and forms. The basic instrument of multi-component break-even analysis includes the usage of assortment shifts and their influence over the location of the point of zero-profit. The important aspect (idea) of the article is understanding the fact that it is necessary to manage not only a single parameter, but the group of indicators simultaneously. The application of this tool in the future will create a number of integrated indicators to characterize the conditions of the break-even activity of universities. Only in this case it will be possible to achieve the effective management of higher schools with the help of the break-even methods. The using of the approaches suggested allows the management team to preserve the university’s property, educational and technical base, human and scientific resources, and in some case to upgrade the social infrastructure. The area of applying the results of the study is planning the financial and economic activities of the universities.