Cost Structure

The purpose of the study is to see how much the total cost and net profit margin issued by the Madurasa abon business.The results of the study obtained a total cost of Rp. 7,041,850 using 14.6% fixed cost and 85.4% variable cost. Percentage of production costs not standardized or production Based on orders. NPM is 57.68%. This means that the profits obtained have the potential in the future. However, there is still a large allocation of variable costs. Where the variable cost should have a smaller value than the fixed cost. This means that in carrying out production and cost management, there is still no good standardization in terms of time and costs incurred. 

Cost rigidity defines the characteristics of cost structure which is defined as the proportion of fixed costs to variable costs of firms. When the proportion of fixed costs are higher than the variable costs, then the cost structure is defined as a rigid cost structure. The structure of operating costs of Turkish manufacturing firms between years 1995 and 2014 is tested in terms of their “rigidity” in this paper. Moreover, the effect of demand uncertainty, as measured by the standard deviation of net sales, on the cost structure of operating costs is also tested. Findings support that higher levels of demand uncertainty are associated with higher portions of fixed costs in the cost structure (i.e., more rigid cost structure). That result contradicts the common wisdom that firms tend to lower the fixed costs in their cost structure as they are confronted with uncertainty

Motivated by the spare parts distribution system of a major automotive manufacturer in Turkey, we consider a multicommodity distribution problem from a central depot to a number of geographically dispersed demand points. The distribution of the items is carried out by a set of identical vehicles. The demand of each demand point can be satisfied by several vehicles and a single vehicle is allowed to serve multiple demand points. For a given vehicle, the cost structure is dictated by the farthest demand point from the depot among all demand points served by that vehicle. The objective is to satisfy the demand of each demand point with the minimum total distribution cost. We present a novel integer linear programming formulation of the problem as a variant of the network design problem. The resulting optimization problem becomes computationally infeasible for real-life problems due to the large number of integer variables. In an attempt to circumvent this disadvantage of using the direct formulation especially for larger problems, we propose a Hierarchical Approach that is aimed at solving the problem in two stages using partial demand aggregation followed by a disaggregation scheme. We study the properties of the solution returned by the Hierarchical Approach. We perform computational studies on a data set adapted from a major automotive manufacturer in Turkey. Our results reveal that the Hierarchical Approach significantly outperforms the direct formulation approach in terms of both the running time and the quality of the resulting solution especially on large instances.

Preliminary notes Today's business of manufacturing systems is entirely dictated by the dynamics of the market and every day there is a need for adjustment of the structure and parameters of associated manufacturing systems. Those adjustments should ensure the operation of manufacturing systems in more favourable manufacturing and economic conditions, and often this process is directly linked with the starting of investment process. On the other hand, every day practice proves that evaluation of investment program during selection of structure of manufacturing system with the aim to accomplish production plans and reduction of production costs is often based on insufficient sets of information. Lack of information may result in inappropriate insight into overall techno-economic effects that can be achieved by investment program. Within this paper are presented researches which resulted in development of a new systematic approach in the analysis of potential structures and parameters of manufacturing systems with the aim to plan, project or reengineer manufacturing systems on the basis of minimal production costs.

en la actualidad, el sector servicios se  ha  posicionado  de  manera  sostenible  en  la  economía  local,  sin  embargo,  al  revisar  la  estructura de costos que las empresas de dicho sector  aplican,  se  evidencia  que  esta  no  se  corresponde  a  sus  necesidades,  en  la  medida  que esta estructura se encuentra configurada a partir de las tendencias y características de las empresas manufactureras. El presente artículo, precisamente tiene la finalidad de analizar la importancia que, desde la academia se innove en la enseñanza de la estructura de costos, para que  los  futuros  profesionales  en  Contaduría  Pública tengan las competencias y habilidades adaptativas  que  les  permita  responder  de  manera  integral  a  los  requerimientos  de  las  empresas  cuyas  características  sugieren  la  utilización  de  otros  métodos  de  costeo.  El  artículo  se  desarrolla  bajo  una  metodología  cualitativa,  haciendo  uso  de  una  entrevista  semiestructurada,  la  cual  permitió  evidenciar  que,    en  la  actualidad  los  docentes  de  costos  de    algunas    universidades    de    la    ciudad    de  Medellín,  no  consideran  pertinente  o  importante    transformar    la    estructura    de    enseñanza  de  los  costos  en  las  facultades  de  Contaduría  Pública,  sin  embargo,  lo  que  consideran relevante es flexibilizar o adecuar la  estructura  tradicional  a  los  requerimientos  de las compañías de servicios.

At  present,  the  services  sector  has  been  positioned  in  a  sustainable  way  in  the  local  economy,  however,  to  review  the  cost  structure  that  the  companies  of  this  sector  apply,  it  is  evident  that  this  does  not  correspond  to  their  needs,  Structure  is  configured based on trends and characteristics of  manufacturing  companies.  The  purpose  of  this  article  is  to  analyze  the  importance  that,  from  the  academy  is  in  teaching  cost  structure,  for  future  professionals  in  public  accounting with adaptive skills and abilities that  respondents  in  an  integral  integral  way.  The  requirements  of  The  companies  whose  characteristics  suggest  the  use  of  other  methods  of  costing.  The  article  is  developed  under a qualitative methodology, using a semi-structured  interview,  which  made  it  possible  to  show  that,  at  present,  the  cost  documents  of some universities in the city of Medellín do not consider relevant or important to transform the  teaching  structure  of  the  Costs  in  the  Faculty of Public Accounting, however, what it considers relevant is to flexibilize or adapt the traditional structure to the requirements of the service companies.

actuellement, le secteur des services s’est positionné de manière durable dans économie locale, cependant, lorsqu’on passe en revue les structure de coûts que les entreprises ont dit secteur s’applique, il est évident que ce n’est pas correspond à vos besoins, dans la mesure que cette structure est configurée pour des tendances et des  caractéristiques  de  la  entreprises  de  fabrication.  Le  présent  article,  précisément,  il a pour but d’analyser la importance que, de l’académie est innover en enseignant la structure des coûts, pour que les futurs professionnels de la comptabilité Le public a les compétences et les capacités adaptatif qui leur permet de répondre manière intégrale aux exigences de la entreprises dont les caractéristiques suggèrent la utilisation d’autres méthodes d’établissement des coûts. Le l’article est développé sous une méthodologie qualitatif,  en  utilisant  une  interview  semi-structuré,  ce  qui  a  permis  de  mettre  en  évidence qui coûtent actuellement aux enseignants de certaines universités de la ville de Medellín, ne considèrent pas comme pertinent ou important de transformer la structure de frais d’enseignement dans les facultés de la comptabilité publique, cependant, ce ils considèrent comme pertinent est de flexibiliser ou d’adapter la structure traditionnelle aux exigences.

Research aim: This paper discusses the factors that cause lecturers to resign based on an extrapolation study at a private corporate University located in South Tangerang, Banten region, Indonesia owned by a big business group in Jakarta
Methods: The research was conducted using the data from exit interviews done by the HR for people who had left the university during 2020-2021 with a total of 25 respondents and the engagement survey result was done for people who were still working in 2022 with a total of 109 respondents
Finding: The results showed that the top three main driving factors for lecturer turnover are remuneration, recognition, and work-life balance. Theoretical contribution/Originality: The research concludes that the first factor for people leaving is due to remuneration
Practitioner/Policy implication: The results of the study provide input for decision-makers in universities on how to improve employee engagement that will reduce lecturer turnover Research limitation: The research is limited due to the scope and information gathered only focus on University X and it does not take into account the individual situation and consideration

The purpose of this study is to analyze the cost structure of a sample of Italian waste collection firms in order to assess economies of scale and density and, therefore, to define the optimal size of the firms in this sector. A total and a variable translog cost function were estimated using panel data for a sample of 30 firms of waste collection and disposal operating at the provincial level over the period 1991-1995. In both models, results indicate the existence of economies of density and economies of scale for most output levels. The empirical evidence suggests that franchised monopolies, rather than side-by-side competition, is the most efficient form of production organization in the waste collection industry. Further, the majority of the firms are not operating at an optimal scale. Therefore, the consolidation of adjacent service territories in small provinces is likely to reduce costs. * We are grateful to CISPEL and NOMISMA for general assistance in constructing the database for the empirical analysis. We would also like to thank Gina Poncini for proofreading the final version of this paper. The views expressed in this paper are strictly personal. Responsibility for any remaining errors lies solely with the authors.

The purpose of this research is to test the ex-post cost structure effects in horizontal mergers and acquisitions (M&A). Our proposed methodology quantifies cost structure effects empirically to inform competition policy around M&As in the airline industry. The results show that horizontal M&As involving unprofitable firms significantly reduce variable costs and increase fixed costs ex-post. M&As involving only profitable firms show no significant impact on the cost structure. We offer support that the ex-post cost structure effects of airline M&As depend on the incentives to improve efficiency, reflected in the ex-ante performance of the merging firms. We further argue that market behavior may not just depend on market structure but cost structures too, all of which should be accounted for in antitrust decision making and regulation around airline M&As.

Little information exists on the cost structure of routine infant immunization services in low-and middle-income settings. Using a unique dataset of routine infant immunization costs from six countries, we estimated how costs were distributed across budget categories and programmatic activities, and investigated how the cost structure of immunization sites varied by country and site characteristics. The EPIC study collected data on routine infant immunization costs from 319 sites in Benin, Ghana, Honduras, Moldova, Uganda, Zambia, using a standardized approach. For each country, we estimated the economic costs of infant immunization by administrative level, budget category, and programmatic activity from a programme perspective. We used regression models to describe how costs within each category were related to site operating characteristics and efficiency level. Site-level costs (incl. vaccines) represented 77-93% of national routine infant immunization costs. Labour and vaccine costs comprised 14-69% and 13-69% of site-level cost, respectively. The majority of site-level resources were devoted to service provision (facility-based or outreach), comprising 48-78% of site-level costs across the six countries. Based on the regression analyses, sites with the highest service volume had a greater proportion of costs devoted to vaccines, with vaccine costs per dose relatively unaffected by service volume but non-vaccine costs substantially lower with higher service volume. Across all countries, more efficient sites (compared with sites with similar characteristics) had a lower cost share devoted to labour. The cost structure of immunization services varied substantially between countries and across sites within each country, and was related to site characteristics. The substantial variation observed in this sample suggests differences in operating model for otherwise similar sites, and further understanding of these differences could reveal approaches to improve efficiency and performance of immunization sites.

This study examines the effects of customer concentration levels on firm cost structure decisions. Analyzing cost data from a sample of manufacturing firms from 1976 through 2013, we find a negative relationship between customer concentration and cost elasticity whereby firms exhibit lower proportions of variable-to-fixed costs in the presence of higher levels of customer concentration. Additionally, we find that greater customer bargaining power, proxied by supplier industry competition and product market fluidity, leads to lower cost elasticity as customer concentration becomes greater. These results are robust to alternate specifications as well as controlling for endogeneity using a two-stage model. Our results suggest that suppliers respond to customer concentration by pursuing increased mutual dependence and cooperation with customers rather than attempting to reduce the effect of power imbalances within the supplier-customer relationship.

The purpose of this study was to assess the influence of cost leadership strategy and firm structure coalignment on firm performance of star rated hotels in Kenya. The research philosophy adopted was positivism and the research design was descriptive and correlative. The population consisted of senior managers from star rated hotels listed by the Tourism Regulatory Authority of Kenya as at 2018. Sampling techniques used in the study were proportionate stratified sampling and simple random sampling. 267 hotel managers were sampled. 253 managers responded out of which 103 respondents were found to represent cost leadership hotels. Hypothesis was tested using structural equation modeling. The study concluded that cost leadership strategy and firm structure coalignment has significant and positive influence on performance of star rated hotels in Kenya. The study recommends hotel managers to ensure a match between the pursuit of cost leadership strategy and the choice of firm structure.

This research investigates the impact of contingency factors on the sophistication of costing systems in Tunisia. Sophistication is analyzed by using the following criteria: ABC systems, full costing systems, the number of cost pools in the first stage of allocation and the number of cost drivers in the second stage of allocation. Data were collected through a questionnaire next to 68 companies having a costing system. Findings show that contingency factors affect the sophistication of costing systems and that company’s strategy and product diversity are the most important factors. These two contingency factors are related to different dimensions of the sophistication. Moreover, big-sized companies and manufacturing companies are more likely to adopt ABC. In addition, the importance of cost information positively affects the use a full costing system and companies with high percentages of indirect costs have a greater number of cost pools. This piece of research is one of the rare s...

The purpose of the study is to see how much the total cost and net profit margin issued by the Madurasa abon business.The results of the study obtained a total cost of Rp. 7,041,850 using 14.6% fixed cost and 85.4% variable cost. Percentage of production costs not standardized or production Based on orders. NPM is 57.68%. This means that the profits obtained have the potential in the future. However, there is still a large allocation of variable costs. Where the variable cost should have a smaller value than the fixed cost. This means that in carrying out production and cost management, there is still no good standardization in terms of time and costs incurred. 

This study examines the effects of customer concentration levels on firm cost structure decisions. Analyzing cost data from a sample of manufacturing firms from 1976 through 2013, we find a negative relationship between customer concentration and cost elasticity whereby firms exhibit lower proportions of variable-to-fixed costs in the presence of higher levels of customer concentration. Additionally, we find that greater customer bargaining power, proxied by supplier industry competition and product market fluidity, leads to lower cost elasticity as customer concentration becomes greater. These results are robust to alternate specifications as well as controlling for endogeneity using a two-stage model. Our results suggest that suppliers respond to customer concentration by pursuing increased mutual dependence and cooperation with customers rather than attempting to reduce the effect of power imbalances within the supplier-customer relationship.

ABSTRAK Penelitian ini dilakukan di UD. Bonesa Kelurahan Kambu Kecamatan Poasia Kota Kendari pada bulan Januari sampai Febuari 2018, dengan tujuan penelitian ini untuk mengetahui perbedaan pendapatan abon ikan dengan jenis abon lain (abon sapi, abon ayam) pada UD. Bonesa.Penelitian ini adalah penelitian studi kasus, Respoden penelitian adalah pemilik usaha dan tenaga kerja yang berjumlah 7 orang. Variabel yang diukur/diamati adalah kegiatan produksi yaitu persiapan alat dan bahan, proses pembuatan, proses pengemasan, proses pemasaran dan biaya-biaya yang digunakan untuk memproduksi abon ikan antara lain biaya tetap dan biaya variabel. Data tersebut diperoleh melalui observasi, wawancara langsung dan dokumentasi. Data yang diperoleh dianalisis menggunakan analisis pendapatan dan t-test independent (uji beda 2  mean). Hasil analisis menunjukkan rata-rata pendapatan abon ikan yang diperoleh sebesar Rp 71.849/kg, sedangkan rata-rata pendapatan jenis abon lain (abon sapi, abon ayam) sebe...

Towards a Business Model for Viable City Logistics Initiatives The role of financial continuity, externalities and stakeholders Katsela, Konstantina 2020 Link to publication Citation for published version (APA): Katsela, K. (2020). Towards a Business Model for Viable City Logistics Initiatives: The role of financial continuity, externalities and stakeholders.

In multi-tier distribution, in addition to suppliers and consumers there are also intermediaries who participate in the transfer of products from manufacturers to end consumers [2]. The choice of the distribution system depends on the optimisation of the performance indicators for servicing an area, taking into account the technical capabilities of the individual logistics chain links. The paper compares two typical distribution structures in the construction sector [9]. The choice of the structure is a function of the manufacturer’s economic and organisational determinants [5].

The purpose of the study is to see how much the total cost and net profit margin issued by the Madurasa abon business.The results of the study obtained a total cost of Rp. 7,041,850 using 14.6% fixed cost and 85.4% variable cost. Percentage of production costs not standardized or production Based on orders. NPM is 57.68%. This means that the profits obtained have the potential in the future. However, there is still a large allocation of variable costs. Where the variable cost should have a smaller value than the fixed cost. This means that in carrying out production and cost management, there is still no good standardization in terms of time and costs incurred.

The purpose of the study is to see how much the total cost and net profit margin issued by the Madurasa abon business.The results of the study obtained a total cost of Rp. 7,041,850 using 14.6% fixed cost and 85.4% variable cost. Percentage of production costs not standardized or production Based on orders. NPM is 57.68%. This means that the profits obtained have the potential in the future. However, there is still a large allocation of variable costs. Where the variable cost should have a smaller value than the fixed cost. This means that in carrying out production and cost management, there is still no good standardization in terms of time and costs incurred. 

An important challenge for macroeconomics is to understand the reasons that retail prices change infrequently and the implications of this pricing behavior for economic welfare and allocative e¢ ciency. This paper develops a menu cost model of pricing in which retail …rms intermediate trade between manufacturers of goods and …nal consumers. In particular, retail …rms purchase manufactured goods in a competitive global market and employ workers to sell the goods in retail outlets at a markup over marginal cost. An important facet of our analysis is that the labor-cost share of retail production di¤ers across goods in the consumption basket. Consequently, …rms with di¤erent cost structures will change prices by di¤erent amounts and at di¤erent frequencies despite facing a common menu cost. This allows us to account for some of the cross-sectional di¤erences observed in the frequency of price changes across goods. We apply this model to Ecuador to take advantage of a rich database of monthly retail prices of more than 200 goods and services across 12 Ecuadorian cities. Ecuador is also an interesting case study for menu cost pricing because it underwent a number of dramatic changes in in ‡ation and exchange rate regimes, with a currency crisis and hyperin ‡ation followed by adoption of the US dollar as the unit of account.

This study seeks to investigate whether the cost of goods sold (COGS) behaves asymmetric to change in sales, and examines the effect of financial risk on asymmetric cost behavior of COGS in the Egyptian manufacturing firms. The financial data of this study were collected from the published annual reports for a sample of 65 Egyptian listed manufacturing firms during the period (2006-2015) with total observations 530 firm-year. The analysis of this paper is based on Anderson et al.’s (2003) cost stickiness model. The findings indicate that the COGS is sticky to change in sales, it rises more when sales increase than when it falls for equivalent sales decrease and the degree of cost stickiness increases with a firm’s financial risk. This study is the first attempt to examine the direct effect of financial risk on the COGS behavior using Altman Z-score model as a proxy for financial risk, which may affect the accuracy of the results. By focusing on this proxy, the study identifies a sig...

Background: A detailed understanding of the costs that local health departments (LHDs) incur in the provision of public health services plays an important role in their efforts to provide services in an effective and efficient manner. However, surprisingly little evidence exists about the key cost components that LHDs incur in the provision of services. Purpose: The purpose of this report was to provide empirical estimates of LHDs’ cost structure. Methods: Using cost information for 2012 from 15 LHDs in North Carolina for two public health services—food and lodging and onsite water—this report first presents estimates of the total costs per service provided. In a second step, total costs are decomposed into key components, including direct and indirect costs. Both data collection and analysis were conducted in 2014. Results: For the LHDs examined in this report, median cost per service amounted to $145 for food and lodging and $82 for onsite water. Service costs, however, varied wid...

This paper presents a detailed comparative review of cost models and cost factors published in a number of studies on freight transportation. It attempts to determine and categorise cost factors from a different point of views in the reviewed studies which include cost factors (operational costs, value of time and external costs), study area (Europe, the United States, North America and Asia) and cost models (activity-based costing (ABC), statistical models, surveys, data mining, GIS, meta-analysis and Mathematical models). The results are assessed by comparison with the reviewed studies. The paper also proposed two model structures; (1) Road freight transportation costs and (2) Road freight transportation cost estimating methods and data gathering. These models are designed to identify any gaps between the types of cost or any inconsistencies in cost factors and consist of an overall structure and multiple substructures.

In multi-tier distribution, in addition to suppliers and consumers there are also intermediaries who participate in the transfer of products from manufacturers to end consumers. The choice of the distribution system depends on the optimisation of the performance indicators for servicing an area, taking into account the technical capabilities of the individual logistics chain links. The paper compares two typical distribution structures in the construction sector. The choice of the structure is a function of the manufacturer’s economic and organisational determinants. The paper presents a model representing the costs of two typical distribution structures in the construction sector. The choice of the structure depends on the company’s outsourcing policy and total costs of all three major system components: the distribution network, transport network, and warehousing. Rationally built and implemented functioning models are a key element of business success in the marketplace. The choi...

The purpose of the study is to see how much the total cost and net profit margin issued by the Madurasa abon business.The results of the study obtained a total cost of Rp. 7,041,850 using 14.6% fixed cost and 85.4% variable cost. Percentage of production costs not standardized or production Based on orders. NPM is 57.68%. This means that the profits obtained have the potential in the future. However, there is still a large allocation of variable costs. Where the variable cost should have a smaller value than the fixed cost. This means that in carrying out production and cost management, there is still no good standardization in terms of time and costs incurred. 

The purpose of this paper is to analyse the cost structure of manufacturing companies in an emerging economy. The data was collected from 41 listed manufacturing companies in Sri Lanka mainly through a structured questionnaire and an analysis of company records. In addition, to analysing the data descriptively, we used correlation and regression models. The findings suggest that despite the majority of costs being variable, there are great differences among the companies in the composition of costs. There is no relationship between the cost structure and the level of advanced manufacturing technology used, which suggests a low level of technologyrelated costs in the cost structure. Budgeting and cost control are the main reasons for classifying costs while there is inadequate use of information for strategizing pricing decisions. Differences were also observed in the classification of the manufacturing cost items in the respondent companies. Finally, all the findings confirm that ac...

Background: A detailed understanding of the costs that local health departments (LHDs) incur in the provision of public health services plays an important role in their efforts to provide services in an effective and efficient manner. However, surprisingly little evidence exists about the key cost components that LHDs incur in the provision of services. Purpose: The purpose of this report was to provide empirical estimates of LHDs’ cost structure. Methods: Using cost information for 2012 from 15 LHDs in North Carolina for two public health services—food and lodging and onsite water—this report first presents estimates of the total costs per service provided. In a second step, total costs are decomposed into key components, including direct and indirect costs. Both data collection and analysis were conducted in 2014. Results: For the LHDs examined in this report, median cost per service amounted to $145 for food and lodging and $82 for onsite water. Service costs, however, varied wid...

This study examines the changes in the cost structure of banking firms using data from pre and post deregulation periods. A translog cost function is utilized for the analyses of economies of scale and scope. The results indicate that the average cost curves, although U-shaped flattened over time, resulting in an increase in optimal bank size. Economies of scope that existed prior to deregulation appears to be exhausted in a more nonconstrained environment.

The purpose of this study is to identify the factors that determine the capital structure of low-cost airlines. Accordingly, it is aimed to test the factors that determine the capital structure in low-cost airlines in the context of capital structure theories. In the study, 15 airline companies, which had continuous financial data during the 2004-2015 period, were examined empirically. Panel data analysis was used as a method in the study. Findings of the study show that low-cost airlines generally operate based on the trade-off theory while borrowing in the short-term and based on the pecking order theory while borrowing in the long-term.

Studies of Indonesian construction supply chains have been in the early stage. Previous studies have described very well the structures of construction project supply chains. Moreover, one of strategies that have been considered by construction companies for gaining a competitive advantage is to reduce the cost of their supply chains. The research's objective is to identify the cost structure of construction supply chains in Indonesia and factors that could influence it. By knowing these factors, construction companies are expected to be able to determine strategic efforts needed for reducing cost of their construction supply chains. Two construction projects operated by a large construction company were explored as case-studies. Rebar material was chosen for this supply chains study. It was found that the cost of purchasing was very significant. Meanwhile, costs of transportation and inventory were insignificant. It can be concluded that efforts to reduce supply chains cost by ...

This conceptual paper explores the phenomena of changing cost-structures and the implications for the volatility of capitalism and the possibility to manage firms in such a hostile environment and proposes future research. It also provides an explanation of why the relevance of accounting is lost, the so-called “relevance lost” debate (see among others Francis & Schipper, 1999). The changing cost-structures raises fundamental questions concerning the resulting volatility of capitalism and the management of firms in such an increasingly more volatile environment. In Philipson, Johansson & Scheley (2016), we raised the question if it was possible to “...to ride the dragon.” Considering the importance of these phenomena, it is astonishing that we have not found any empirical research concerning them. They rest research questions, based on the author’s almost 25 years of experience as a senior executive in Scandinavian industry.

This study explores motivations underlying managers' resource adjustments. We examine asymmetric costs resulting from current resource adjustments made intentionally to meet earnings targets under constraints set by past technology choices aimed to maximize firm value. Findings indicate that early technology choices induce cost stickiness in the absence of incentives to meet earnings targets. Costs exhibit greater stickiness in the presence of hard technological constraints than in the presence of weak technological constraints. However, resource adjustments made intentionally to meet earnings targets wash away, rather than induce, cost stickiness imposed by predetermined technological constraints, resulting in symmetric costs. The findings suggest that some deliberate decisions induce sticky costs while other deliberate decisions diminish sticky costs depending on the underlying motivations.

The aim of this study is to determine the sticky cost behavior of publicly-traded companies in Brazil, Russia, India, China, South Africa and Turkey (BRICS+T) that are classified as developing economies during the period 2010-2019. In addition to the purpose, the firm characteristics that play a role in the sticky cost behavior of firms and the effect of the Gross Domestic Product (GDP), which is a macroeconomic indicator, has been investigated. The study revealed that the firms in BRICS+T exhibit a sticky cost behavior. Furthermore, it also suggested that inventory intensity, which is one of the firm characteristics, does not affect cost stickiness and that asset, employee and property, plant and equipment intensity raise the level of cost stickiness while debt intensity declines the level of cost stickiness. Last but not least, it was found out that GDP, which is a macroeconomic indicator, raises the sticky cost level when it tends to rise.

Conventional cost accounting assumes that the relation between cost and volume is symmetric for volume increases and decreases. We test an alternative model where costs increase more when activity rises than they decrease when activity falls by an equivalent amount. We find, for a sample of Brazilian firms that selling, general, and administrative costs increase 0.59% per 1% increase in sales but decrease only 0.32% per 1% decrease in sales. We test several hypotheses about the properties of sticky costs and how the stickiness of SG&A costs changes with firm circumstances and we confirm cost stickiness for Brazilian firms.

The cost behavior is one of the most important aspect of the analysis of businesses profitability. The traditional model of study of its behavior requires strict proportion with the level of activity, something that is not shared by modern studies. To understand better the behavior of asymmetric cost, our work examines the behavior of the Greek retail food, beverages and tobacco companies. We studied 438 limited companies for a period of 12 years, and noticed that a 1% increase in sales, leads to an increase of 1.011% of the cost, while the corresponding reduction lowers the cost of sales by 0,905%. The industry addressed by our study, has a direct relation to all households. So, it is important the industry to be studied further, in order to give more opportunities and benefits for consumers and state. Last,, future studies can use our study in an attempt to understand better the behavior of asymmetric costs.

A fundamental assumption in cost accounting is that the relation between costs and volume is symmetric for volume increases and decreases. In this study, we investigate whether costs are "sticky"-that is, whether costs increase more when activity rises than they decrease when activity falls by an equivalent amount. We find, for 7,629 firms over 20 years, that selling, general, and administrative (SG&A) costs increase on average 0.55% per 1% increase in sales but decrease only 0.35% per 1% decrease in sales. Our analysis compares the traditional model of cost behavior in which costs move proportionately with changes in activity with an alternative model in which sticky costs occur because managers deliberately adjust the resources committed to activities. We test hypotheses about the properties of sticky costs and how the degree of stickiness of SG&A costs varies with firm circumstances.

This study examines the effect of conservatism, growth and firm-specific characteristics (debt intensity, asset intensity, and working capital intensity) on sticky cost behavior. The sample consists of nonfinancial listed companies in the GCC countries (the Qatar, United Arab Emirates, Bahrain, Saudi Arabia, Oman and Kuwait), a total of 294 companies from years 2010 to 2019 forming 2940 observations. The findings show that the GCC companies have, on average, sticky cost behavior, and the degree of cost stickiness dif ers between the six GCC countries. The results concluded that sticky cost firms show higher conditional conservatism, and those companies with higher debt levels on their balance sheets display no cost stickiness, but the GCC firms with intensive working capital tend to be sticky when revenue decrease. No significant relationship found between cost stickiness and asset intensity and GDP growth variables.

This study examines the effect of conservatism, growth and firm-specific characteristics (debt intensity, asset intensity, and working capital intensity) on sticky cost behavior. The sample consists of nonfinancial listed companies in the GCC countries (the Qatar, United Arab Emirates, Bahrain, Saudi Arabia, Oman and Kuwait), a total of 294 companies from years 2010 to 2019 forming 2940 observations. The findings show that the GCC companies have, on average, sticky cost behavior, and the degree of cost stickiness dif ers between the six GCC countries. The results concluded that sticky cost firms show higher conditional conservatism, and those companies with higher debt levels on their balance sheets display no cost stickiness, but the GCC firms with intensive working capital tend to be sticky when revenue decrease. No significant relationship found between cost stickiness and asset intensity and GDP growth variables.

The objective of this study is to examine the impact of economic crisis on cost structure configuration of companies. For this reason, an empirical study in the form of online survey has been carried out in 82 Greek manufacturing companies. We received data from two periods of great economic recession, namely during fall of 2013 and spring of 2015. Results indicated that companies most affected by the economic crisis, replaced fixed costs with variable ones. Cost structure configuration is the "tool" that companies used to limit the consequences of the crisis in their profitability.

Cost rigidity defines the characteristics of cost structure which is defined as the proportion of fixed costs to variable costs of firms. When the proportion of fixed costs are higher than the variable costs, then the cost structure is defined as a rigid cost structure. The structure of operating costs of Turkish manufacturing firms between years 1995 and 2014 is tested in terms of their “rigidity” in this paper. Moreover, the effect of demand uncertainty, as measured by the standard deviation of net sales, on the cost structure of operating costs is also tested. Findings support that higher levels of demand uncertainty are associated with higher portions of fixed costs in the cost structure (i.e., more rigid cost structure). That result contradicts the common wisdom that firms tend to lower the fixed costs in their cost structure as they are confronted with uncertainty.

The structure of operating costs of Turkish manufacturing firms between years 1995 and 2014 is tested in terms of their “rigidity” in this paper. Rigidity is defined as the proportion of fixed costs to variable costs in cost structures. Additionally, the effect of demand uncertainty as measured by the standard deviation of net sales on the cost structure of operating costs is also tested. Results support that higher levels of demand uncertainty are associated with higher portions of fixed costs in the cost structure.

The aviation industry at present is characterized by high fuel charges, scarcity of l
pilots, technical staff and infrastructure on one side and low fare, fierce competition
and entry of new players on the other. The industry has been witnessing stupendous
growth rate as well. So, the total cost has been increasing and revenue per
passenger has been decreasing. The higher growth rate and low fare has two
opposite effects on the profitability. The article examines the industry analytically 3
with respect to its cost structure and pricing policy. The financial analyses of some
major airliners have also been included. The higher amount of loss incurred on
consistency basis causes a sense of turbulence within the industry. in fact, the
industry has been caught in a vicious cycle that is negatively affecting the industry.
in this respect, the article seeks to check whether the present low airfare is
sustainable or not. It suggests that the airliners have no scope but to hike airfare in
the near future.

Contemporary studies on cost behaviour find that costs increase more with activity increases than they decrease in response to equivalent activity decreases. This sticky cost behaviour contradicts the traditional model which assumes that costs behave symmetrically for activity increases and decreases. Using a sample of US, UK, French, and German firms, we find that operating costs are sticky in response to changes in revenues; operating costs increase, on average, by 0.97% per 1% increase in revenues, but decrease by only 0.91% per 1% decrease in revenues. However, costs of firms that are subject to code-law systems of corporate governance (France and Germany) are more sticky than costs of firms which are subject to common-law systems of corporate governance (US and UK). Firm-specific and industry characteristics also impact on levels of cost stickiness.

Contemporary studies on cost behaviour find that costs increase more with activity increases than they decrease in response to equivalent activity decreases. This sticky cost behaviour contradicts the traditional model which assumes that costs behave symmetrically for activity increases and decreases. Using a sample of US, UK, French, and German firms, we find that operating costs are sticky in response to changes in revenues; operating costs increase, on average, by around 0.97% per 1% increase in revenues, but decrease by only 0.91% per 1% decrease in revenues. Costs of French and German firms are more sticky than costs of UK and US firms; we conjecture that this result is attributable to differences in systems of corporate governance and managerial oversight. Costs tend to be less sticky over longer time-horizons and when firms sustain larger drops in revenue. Firm-specific and industry characteristics also impact on levels of cost stickiness.

Using data from Ontario hospitals, we investigate the conjecture that the stickiness of costs would be greater for functions that relate to an organization's core competency. We find operating costs for the hospital as a whole are sticky. Moreover, we find higher stickiness in costs pertaining to patient care relative to costs in other functions. Indeed, there is no evidence of stickiness in the operating costs of support departments that are peripherally related to the hospital's mission.