Understanding Cost Management

Understanding Cost Management: What Can We Learn from the falsifiable Evidence on Sticky Costs? Shannon W. Anderson Jesse H. Jones Graduate nurture of Management; Rice University 6100 Main Street; 239 McNair Hall MS 531 Houston, TX 77005 and University of Melbourne Department of account statement and business enterprise 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 congenial 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, southern 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] happen that the absolute change in SG&A toll associated with decrease gross revenue activity is systematically less than that associated with increased sales activity (so-called sticky be). They symbolise this as evidence of loose represent commission.

We review theory, semi a posteriori tests, and data employed in the sticky monetary value literature and argue that sticky address behavior is not equal to discriminate between managerial and mechanical theories of cost management. We break up that, using the empiric specification and data of prior studies, each observed cost behavior is consistent with cost mana! gement and focus kind of on whether adjustment costs that are hypothesized to influence cost management decisions are associated with sticky cost behavior. We identify problems with an partial 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, club it on our website: BestEssayCheap.com

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