Analyzing cost behavior of Philippine industrial firms
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Document Type
Article
Source Title
Academy of Accounting and Financial Studies Journal
Volume
20
Issue
1
First Page
103
Last Page
113
Publication Date
1-1-2016
Abstract
Recent studies find that cost behave asymmetrically with changes in activity levels which challenges the traditional view that cost behaves either symmetrically with volume (variable) or remains the same (fixed). Philippine industrial firms exhibit this cost behavior using discretionary costs such as sales, general and administrative expenses (SGA). However, the question remains whether they exhibit the same behavior for other types of costs such as cost of goods sold, investment costs and total operating costs. This study shows that Philippine industrial firms adjust their cost structures whether it be their cost of goods sold, investment costs or total operating costs with changes in demand conditions using the empirical model of ABJ (2003).
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Recommended Citation
Uy, A. O. (2016). Analyzing cost behavior of Philippine industrial firms. Academy of Accounting and Financial Studies Journal, 20 (1), 103-113. Retrieved from https://animorepository.dlsu.edu.ph/faculty_research/2002
Disciplines
Accounting
Keywords
Costs, Industrial--Philippines
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