Cost behaviour classification and cost behaviour structures of manufacturing companies

Abstract

Cost behaviour classification and cost behaviour structures of manufacturing companies. The purpose of this paper is to determine the cost structures of companies that formed part of an empirical investigation. Further aspects were investigated to determine why manufacturing companies classify cost behaviour into fixed and variable components and to determine how these companies classify specific cost items. It was found that there is a significant negative relationship between the fixed cost of a company and its degree of technological development. This means that labour intensive companies have more fixed cost as part of total costs and therefore a higher operating risk than technologically developed companies. It was also found that manufacturing companies classify cost items differently and this study provides some guidelines how to manage cost behaviour.

Citation

Oberholzer, M. and Ziemerink, J.E.E. (2004), "Cost behaviour classification and cost behaviour structures of manufacturing companies", Meditari Accountancy Research, Vol. 12 No. 1, pp. 179-193. https://doi.org/10.1108/10222529200400010