Empirical Research On Cost And Expense Stickiness Of Manufacturing Enterprises

Cost behavior theory in traditional management accounting assumes that there is inevitable linear relationship between the changes of cost and volume of business. However, many scholars at home and abroad through empirical study found that the existence of non-linear relationship between the changes of cost and volume of business, which is phenomenon of stickiness. The cost&expense stickiness is defined as the asymmetry in the cost changes with the volume of business, which exhibit that the change of cost&expense while volume of business increasing is greater than while reducing. Regardless of production and operations decision-making and strategic selection decisions, cost&expense stickiness theory will be analyzed and used. Based on the status and role of manufacturing enterprises in China's economic development, it is necessary to make relevant recommendations to strengthen cost management and help its long-term, sustainable and efficient development, and also can further enhance the level of economic development in China. Therefore, the cost&expense stickiness of manufacturing enterprises in China has a certain theoretical and practical significance.Firstly, the text reviews and summarizes the research on cost and expense stickiness by domestic and foreign scholars, analyses the causes, characteristics and influencing factors of cost and expense Stickiness, and combines with the choice of corporate strategy. Secondly, regarding listed companies of manufacturing enterprises in China as samples, from the perspective of the stickiness of Cost of Goods Sold, Selling General&Administration and Total Cost and Expense, the text validates the existence of cost and expense stickiness of manufacturing enterprises in China listed companies during the period of2000to2010through empirical research and comparative research methods, and verifies the relationship between the different types of costs stickiness and ratio of non-current asset and liability to asset. The results show that:1, Manufacturing enterprises in China listed companies exist a sticky phenomenon in CGS, SGA and TCE.2, If RNCA of manufacturing enterprises in China is higher, its degree of CGS and TCE stickiness is greater, SGA is on the contrary weaker.3, If RAL of manufacturing enterprises in China is higher, its degree of CGS, SGA and TCE stickiness is greater.4, For the degree of stickiness, SGA is the largest, followed by TCE, CGS is the smallest. Finally, the text provides several suggestions on cost management and control, decision-making and strategic management of manufacturing enterprises from the point of CGS, SGA and TCE.The cost stickiness is an objective reality, and cannot be completely eliminated. However we can strengthen internal management to reduce the negative effects of cost and expense stickiness, and the level of enterprise cost management and optimization strategies structure, thereby enhancing the level of profitability and Long-term performance.