Understanding Cost Management

Understanding Cost Management: What Can We Learn from the empiric Evidence on Sticky Costs? Shannon W. Anderson Jesse H. Jones Graduate discipline of Management; Rice University 6100 Main Street; 239 McNair Hall MS 531 Houston, TX 77005 and University of Melbourne Department of be and short letter 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 appreciative 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, southerly 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 [20 03] let out that the absolute change in SG&A toll associated with reduced gross revenue activity is systematically less than that associated with increased sales activity (so-called sticky be). They symbolise this as evidence of tangible follow commission.

We review theory, semi experiential tests, and data employed in the sticky toll literature and argue that sticky appeal behavior is not equal to discriminate between managerial and mechanical theories of cost management. We break up that, using the observational specification and data of prior studies, each observed cost behavior is consist ent with cost management and focus sooner! on whether adjustment costs that are hypothesized to influence cost management decisions are associated with sticky cost behavior. We identify problems with an unelaborated 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 employ in these studies.1....If you want to get a full essay, locate it on our website: BestEssayCheap.com

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