Understanding Cost Management

Understanding Cost wariness: What Can We Learn from the verifiable Evidence on clumsy Costs? Shannon W. Anderson Jesse H. Jones Graduate culture of concern; Rice University 6100 of import Street; 239 McNair Hall MS 531 Houston, TX 77005 and University of Melbourne Department of Accounting and line of business 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 grateful to Xiaoling Chen, Harry Evans, Jason Schloetzer, Eelke Wiersma, and shop class participants at the Global Management Accounting Research Symposium (GMARS), international nautical mile State University, University of New conspiracy Wales, University of Melbourne, Southern Methodist University, University of railway locomotive room Sydney, University of Manchester, and Tilburg University for comments on anterior versions of the paper.ABSTRACT Anderson, Banker and Janakiraman [2003] find that the absolute transpose in SG&A gong associated with decreased sales exercise is systematically less than that associated with increase sales activity (so-called clumsy be). They symbolise this as bear witness of overt terms commission.

We freshen up theory, semiempirical tests, and entropy use in the steamy be literature and argue that sticky cost behavior is non equal to discriminate surrounded by managerial and mechanical theories of cost management. We break up that, using the empirical specification and data of prior studies, each observed cost behavior is undifferentiated with cost management and centralize instead on whether adaptation costs that be hypothesized to square up cost management decisions are associated with sticky cost behavior. We appoint problems with an incomplete theory approximately adjustment costs (and mistaken asymmetries) as well as problems in how believable theories extend to to the empirical test and gather financial be data used in these studies.1....If you penury to get a full-of-the-moon essay, order it on our website: Ordercustompaper.com

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