Using Capacity Utilization to Measure Asymmetric Labor Cost Behavior and Capacity Expansion
الباحث الأول:
KARRAR Abdulellah Azeez
الباحثين الآخرين:
, HAN DongPing , JUMA Buhimila Mabula, MARWAH Abdulkareem Mahmood᾽
المجلة:
International conference on management science and engineering
تاريخ النشر:
None
مختصر البحث:
Cost accounting research usually has approached studies on relationship between cost and volume by asymmetric behavior for volume increase and decrease through models with costs and output variations of relative changes. This paper aims to develop a…
Cost accounting research usually has approached studies on relationship between cost and volume by asymmetric behavior for volume increase and decrease through models with costs and output variations of relative changes. This paper aims to develop and estimates two dynamic points that can account for this key symmetry between optimal capacity and sticky labor costs. In this paper, we find that asymmetric cost behavior is also a pervasive phenomenon in Iraqi companies during the period 2006-2015.We find manufacturing, selling, and administrative labor costs are sticky, and also there is no mechanical relation between labor costs and activity (separate changes into labor costs with capacity volume and sales revenue).Finally, we find that both capacity utilization and expansion influence the asymmetry relation between labor cost and volume positively and significantly. We suggest that future empirical tests on sticky costs should control for the capacity utilization effect of expansion. Our results from Iraqi industry companies provide evidence on the sticky labor costs and capacity expansion, and contain important implications for both cost accounting research and operations management research.
Keywords: capacity utilization, asymmetry behavior, sticky labor costs, employment capacity.
