Adjustment Costs and Cost Stickiness
Jerica Helen Wijaya, Ronny Prabowo

Department of Accounting, Faculty of Economics and Business, Satya Wacana Christian University

Abstract

This research aims to determine the effect of asset intensity and employee intensity on cost stickiness in manufacturing companies in Indonesia. This research uses secondary data, namely financial statements of companies listed on the Indonesia Stock Exchange (IDX) with purposive sampling method for the sampling process. The analytical method used in testing the hypothesis is the method developed by Anderson, Banker and Janakiraman (ABJ) to see the behavior of cost of goods sold when sales decline. The results of this study indicate that the cost stickiness phenomenon does not occur at these costs, but finds an indication of the relationship between asset intensity and cost stickiness. This is different from employee intensity which has no effect on cost stickiness.

Keywords: cost management, cost stickiness, adjustment costs

Topic: Accounting