A Case Study On The Factors Affecting The Cost Stickiness Of Company A Company

In today’s highly competitive social environment, cost management is an important part of management, its profitability situation plays an important role. Traditional cost accounting theory is that changes in the magnitude and cost of sales is consistent Changed changes in the cost of sales and changes in linear relationship. However, in recent years many scholars of the traditional cost theory put forward different views that change with changes in the cost of the traffic is not completely linear relationship, in many industries, under different external and internal factors, there will be two of the non-linear relationship between. The concept proposed cost stickiness, namely when the cost of a decline in business in the enterprise business volume increased rate of increase is greater than the rate of decrease is referred to as "cost stickiness." However, the cost of domestic and foreign research scholars cohesive existence of problems and issues influencing factors, research methods focused on empirical research, through the large sample test costs sticky problem.From the perspective of the life cycle theory, research A business start-up respectively in the period, growth, maturity and decline of four stages, the cost of the company’s existence is checked sticky and its influencing factors were analyzed. A group of enterprises through the collected material, financial data empirical analysis, was found in an initial stage, when the growth and maturity of the recession, there will be costs when compared with the same degree of stickiness phenomenon in growth and maturity, viscous than the start-up costs and decline significantly further study found that when the start-up and growth, the company’s operating capacity and cost leadership strategy is an important factor mainly affects the cost of sticky, because the business has just started, the product is not yet stable, funding the relative lack of flow, customer and supplier relationship has just been established, the lack of credibility. Thus, companies will be sold below market price by taking "puerile" marketing strategy. Thus, companies will be sold below market price by taking "puerile" marketing strategy. Growth stage and maturity corporate cash flow is relatively stable, the accumulation of resources has reported date certain ability to resist risks, in order to achieve long-term strategic objectives, begin by developing new products, build the core competitiveness of enterprises. Therefore, in mature company’s cost relative viscosity significantly, companies increasingly turn to the process of differentiation strategy from cost leadership strategy. When in the mature stage, after the enterprise scale to a certain extent, the future development has encountered a bottleneck for further development, at this time vertically integrated value chain, one can be absorbed into the upstream and downstream enterprises of the enterprise value chain in the past, but also through new product development, improve the overall operational efficiency of enterprises, the company ushered in a new development opportunity. Recession, companies are facing a global economic crisis, the gear industry is facing sluggish sales, production overcapacity "oversupply" dilemma, eventually ended in liquidation.Structure paper is organized as follows:first outer introduction, significance of the topic, research background, a brief review of domestic and foreign enterprises on the life cycle methodology and framework design content; the second part within the viscous affecting business costs external factors are summarized; part Ⅲ case Selection and case introductory part; the fourth part of the case to divide the life cycle of each test cycle cost stickiness existence of further major cost factors viscous different periods were analyzed; s based in part on the basis of five case studies on enterprise cost management and cost strategic choice in different periods of proposed improvements. The sixth part is conclusion and prospect research.