Understanding Cost Management

Understanding Cost Management: What Can We Learn from the empiric Evidence on Sticky Costs? Shannon W. Anderson Jesse H. Jones Graduate schooltime of Management; Rice University 6100 Main Street; 239 McNair Hall MS 531 Houston, TX 77005 and University of Melbourne Department of be and personal credit line Information Systems and William N. Lanen* The Stephen M. Ross School of Business at the University of lolly 701 Tappan St. Ann Arbor, MI 48109-1234 (lanen@umich.edu) April 2009 *Corresponding author. We ar gratifying to Xiaoling Chen, Harry Evans, Jason Schloetzer, Eelke Wiersma, and workshop participants at the Global Management Accounting Research Symposium (GMARS), Michigan State University, University of New South Wales, University of Melbourne, gray Methodist University, University of engine room Sydney, University of Manchester, and Tilburg University for comments on earlier versions of the paper.ABSTRACT Anderson, Banker and Janakiraman [ 2003] understand that the absolute change in SG&A toll associated with diminish sales activity is systematically less than that associated with increased sales activity (so-called sticky be). They symbolise this as evidence of receptive be commission.

We review theory, semi verifiable tests, and data employed in the sticky greet literature and argue that sticky cost behavior is not equal to discriminate between managerial and mechanical theories of cost management. We break up that, using the semiempirical specification and data of prior studies, each observed cost behavior is consistent with cost management and focus quite on whether adju! stment costs that are hypothesized to influence cost management decisions are associated with sticky cost behavior. We identify problems with an rudimentary theory about adjustment costs (and assumed asymmetries) as well as problems in how believable theories relate to the empirical test and aggregate financial be data utilise in these studies.1....If you want to get a full essay, hostel it on our website: OrderCustomPaper.com

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