Cost Behavior and Cost Management Activities: A Conceptual Framework of Cost Management Activities

Abstract

Behind cost behavior, a manager carries out a variety of cost management activities for the maximization of the corporate value. Therefore, it is necessary to identify various cost management activities to understand cost behavior. In recent years, cost behavior literature using archival data has been growing rapidly and clarifies some of a variety of cost management activities. However, various types of cost management activities behind cost behavior have not been fully explored in previous studies. By reviewing cost behavior literature, I pointed out the necessity of exploring relations of cost behavior and cost management activities. Then, I proposed a general conceptual model which allow a researcher to identify firms' cost management actions. Furthermore, I examined the validly of the conceptual model using the logistics cost survey data.