Analysis of overhead cost behavior: case study on decision-making approach
Cost management is one of the most significant issues in company performance and company financial management which any enterprise has to solve as in the periods of declines of sales revenues, as well as during their growth. In this study we designed and tested several regression models that could b...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Centre of Sociological Research, Szczecin, Poland
2017-05-01
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| Series: | Journal of International Studies |
| Subjects: | |
| Online Access: | http://jois.eu/?313,en_analysis-of-overhead-cost-behavior-case-study-on-decision-making-approach |
| _version_ | 1819240780854722560 |
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| author | Petr Novák Ján Dvorský Boris Popesko Jiří Strouhal |
| author_facet | Petr Novák Ján Dvorský Boris Popesko Jiří Strouhal |
| author_sort | Petr Novák |
| collection | DOAJ |
| description | Cost management is one of the most significant issues in company performance and company financial management which any enterprise has to solve as in the periods of declines of sales revenues, as well as during their growth. In this study we designed and tested several regression models that could be suitable for cost behavior prediction and subsequent decision-making based on these predictions. We used multiple linear regression models with a point estimate and with interval estimate of the model parameters. Comparison of regression models of cost behavior and their reliability was carried out due to the quality of the data collected for the case of basic and adjusted data. The overheads were divided into several groups of relevant costs and their dependences were examined on different factors other than only the production volume using the correlation matrix. From the results of the transformed model we believe that asymmetric cost behavior is affected by asymmetric behavior of the chosen factors. As the final one was intended the model representing the change in costs in time shifting about one-month period. This model can be used for examining costs in time shift by a short period (e.g., months) and thus it is possible to prove cost asymmetric behavior called "sticky costs". We used the model adjusted in accordance with Anderson et al. (2003). and we kept the model clearly transformed and assembled so that there remained only those variables that had a statistically significant effect on the dependent variable. The limitations of these models were also defined. Finally, graphical analyses of deviations were performed to find similarities in cost through cost centres and through the examined periods. |
| first_indexed | 2024-12-23T14:13:28Z |
| format | Article |
| id | doaj.art-daef52a330fa4726810ffc5b1edaa7d2 |
| institution | Directory Open Access Journal |
| issn | 2071-8330 2306-3483 |
| language | English |
| last_indexed | 2024-12-23T14:13:28Z |
| publishDate | 2017-05-01 |
| publisher | Centre of Sociological Research, Szczecin, Poland |
| record_format | Article |
| series | Journal of International Studies |
| spelling | doaj.art-daef52a330fa4726810ffc5b1edaa7d22022-12-21T17:43:59ZengCentre of Sociological Research, Szczecin, PolandJournal of International Studies2071-83302306-34832017-05-0110110.14254/2071-8330.2017/10-1/5Analysis of overhead cost behavior: case study on decision-making approachPetr Novák0Ján Dvorský1Boris Popesko2Jiří Strouhal3Tomas Bata University in ZlínTomas Bata University in ZlínTomas Bata University in ZlínTomas Bata University in ZlínCost management is one of the most significant issues in company performance and company financial management which any enterprise has to solve as in the periods of declines of sales revenues, as well as during their growth. In this study we designed and tested several regression models that could be suitable for cost behavior prediction and subsequent decision-making based on these predictions. We used multiple linear regression models with a point estimate and with interval estimate of the model parameters. Comparison of regression models of cost behavior and their reliability was carried out due to the quality of the data collected for the case of basic and adjusted data. The overheads were divided into several groups of relevant costs and their dependences were examined on different factors other than only the production volume using the correlation matrix. From the results of the transformed model we believe that asymmetric cost behavior is affected by asymmetric behavior of the chosen factors. As the final one was intended the model representing the change in costs in time shifting about one-month period. This model can be used for examining costs in time shift by a short period (e.g., months) and thus it is possible to prove cost asymmetric behavior called "sticky costs". We used the model adjusted in accordance with Anderson et al. (2003). and we kept the model clearly transformed and assembled so that there remained only those variables that had a statistically significant effect on the dependent variable. The limitations of these models were also defined. Finally, graphical analyses of deviations were performed to find similarities in cost through cost centres and through the examined periods.http://jois.eu/?313,en_analysis-of-overhead-cost-behavior-case-study-on-decision-making-approachcost managementcost behaviorregression analysisasymmetric cost behaviordecision-making processoverhead costs |
| spellingShingle | Petr Novák Ján Dvorský Boris Popesko Jiří Strouhal Analysis of overhead cost behavior: case study on decision-making approach Journal of International Studies cost management cost behavior regression analysis asymmetric cost behavior decision-making process overhead costs |
| title | Analysis of overhead cost behavior: case study on decision-making approach |
| title_full | Analysis of overhead cost behavior: case study on decision-making approach |
| title_fullStr | Analysis of overhead cost behavior: case study on decision-making approach |
| title_full_unstemmed | Analysis of overhead cost behavior: case study on decision-making approach |
| title_short | Analysis of overhead cost behavior: case study on decision-making approach |
| title_sort | analysis of overhead cost behavior case study on decision making approach |
| topic | cost management cost behavior regression analysis asymmetric cost behavior decision-making process overhead costs |
| url | http://jois.eu/?313,en_analysis-of-overhead-cost-behavior-case-study-on-decision-making-approach |
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