DOES COST BEHAVIOR INFLUENCE THE ACCURACY OF RETURN FORECASTS?
DOI:
https://doi.org/10.51320/rmc.v26i2.1788Abstract
The traditional accounting perspective posits that an entity’s costs adjust proportionally to variations in volume, thereby tracking the fluctuations in operational levels (Banker; Ciftci & Mashruwala, 2008). Conversely, uncertainties related to future demand, managerial decisions concerning resource allocation, and the contemporary macroeconomic environment may no longer be adequately accounted for under this framework. This situation underscores the necessity for an alternative conceptualization of cost behavior to more accurately elucidate cost dynamics, taking into consideration their implications for the managerial requirements of organizations (Novák; Dvorský; Popesko & Strouhal, 2017).
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