Cost Behavior and Fundamental Analysis of SG&A Costs

Abstract

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Implications of Cost Behavior for Analysts' Earnings Forecasts

“…In another related research, Anderson et al [2007] estimate an earnings prediction model and find that future earnings are positively related to changes in the SG&A cost ratio in periods when revenue declines, inconsistent with the traditional interpretation of SG&A cost changes.…”

“…Our study addresses this issue by focusing on the understanding of cost behavior patterns by financial analysts and extends Anderson et al [2007] by exploring whether investors are misled by analysts.…”

“…(iv) Intensity of selling, general, and administrative (SG&A) costs -Early studies focused on SG&A costs for documenting sticky costs (Anderson, Banker and Janakiraman [2003], Noreen and Soderstrom [1997], Anderson, et al [2007]). We test whether analysts paid more attention to cost structures in firms with high proportion of SG&A costs.…”

Comparative analysis of sticky SGA costs and cost of goods sold: Evidence from Tehran Stock Exchange

“…The study integrated a typical management accounting research topic, cost behavior, with three standard financial accounting topics. Anderson et al (2007) estimated an earnings prediction model and reported that future earnings were positively associated with changes in the SG&A cost ratio in periods in which revenue declines, inconsistent with traditional interpretation of SG&A cost changes. In addition, in their survey, abnormal positive returns could be earned on portfolios formed by going long on firms with high increases in the SG&A cost ratio…”

Perilaku Sticky Cost Pada Biaya Penjualan, Administrasi Dan Umum (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2009-2012)

“…Sehingga dimungkinkan manajer akan mempertahankan sumber daya yang tidak terpakai. Menurut Anderson et al (2006), perilaku biaya administrasi dan umum dapat dipelajari dengan menghubungkan aktivitas penjualan karena volume penjualan memiliki pengaruh pada beberapa komponen biaya penjualan, administrasi dan umum. Ketika manajemen memutuskan untuk mempertahankan utilisasi sebenarnya menunda penyesuaian biaya, yang pada akhirnya membiarkan biaya penjualan, administrasi dan umum tetap.…”