In the recent years of management accounting research, the discussion on both the phenomenon of the cost stickiness and the applicability of the hierarchical linear model(HLM) is showing an interesting deployment. We have much interest in how the costs vary with volatility in the sales and what makes an impact on the sales. This paper sets three research questions: (1)what are new findings, and what is the difference from the conventional knowledge, (2)what kind of the new managerial implications from new findings we can get, and (3)how we can consider the future direction of the management accounting research about cost behavior, cost driver, and revenue driver. Then, this paper is intended to clarify the agenda and contemporary role expected in the area of cost behavior and costing. Based on the above, this paper summarizes the reports of three panelists, and then organizes the discussions on both the phenomenon of the cost stickiness and the applicability of the hierarchical linear model (HLM). Finally, the contributions and the features in the discussion theme of the annual conference are clarified.

Firm value is determined by the future free cash flow and the discount rate that reflects the firm risks. Recent studies reveal that a firm’s cost structure is closely linked to its risk. This study discusses the association between a firm’s cost structure and risk, and highlights the importance of focusing on management incentives to examine these cost structures in management accounting. Further, I examine empirical literature on asymmetric cost behavior, especially regarding the asymmetric CVP model, in which management incentives serve as key factors in studying cost structures. Finally, I suggest that the theory of the firm as the cost function and agency-theory model should be analyzed in a unified framework.

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.

In this paper, I investigate relevance of the Hierarchical Linear Model(HLM) in management accounting research and practice. Then, I reviewed the literature of the empirical strategic management research and the empirical accounting research. In addition, I discussed the notes on the empirical analysis using HLM in the study of financial information in a more micro situations, and the implication of management accounting research and practice.