The impact of economic crisis on cost structure configuration

Authors

DOI:

https://doi.org/10.17811/ebl.10.1.2021.87-94

Abstract

The objective of this study is to examine the impact of economic crisis on cost structure
configuration of companies. For this reason, an empirical study in the form of online survey
has been carried out in 82 Greek manufacturing companies. We received data from two periods
of great economic recession, namely during fall of 2013 and spring of 2015. Results indicated
that companies most affected by the economic crisis, replaced fixed costs with variable ones.
Cost structure configuration is the “tool” that companies used to limit the consequences of the
crisis in their profitability.

 

Keywords: economic crisis, cost structure, fixed costs, variable costs.

 

 

JEL classification numbers:  M20, M21, M42

 

Author Biography

Odysseas Pavlatos, University of Macedonia, Department of Accounting and Finance, Greece

Odysseas Pavlatos is Assistant Professor of Accounting at the Department of Accounting and Finance, University of Macedonia, Thessaloniki, Greece. His research focuses on Cost and Management Accounting. His research has appeared in journals such as Advances in Accounting,  Journal of Accounting and Organizational Change, Journal of Applied Accounting Research, and Journal of Economic Asymmetries, among others.

References

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Janke, R., Mahlendorf, M. and Weber, J. (2014) An exploratory study of the reciprocal relationship between interactive use of management control systems and perception of negative external crisis effects, Management Accounting Research, 25 (4), 251-270.

Pavlatos, O. and Kostakis, X. (2018) Management Accounting Innovations in a time of economic crisis, Journal of Economic Asymmetries, Vol. 18 (November), doi: https://doi.org/10.1016/j.jeca.2018.e00106

Pavlatos, O. and Kostakis, X. (2015), Management Accounting Practices before and during economic crisis: Evidence from Greece, Advances in Accounting, 31 (1), 150-164.

Van der Stede, W.A. (2011), Management accounting research in the wake of the crisis: some reflections, European Accounting Review, 20 (4), 605–623.

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Published

2021-02-21

How to Cite

Pavlatos, O. (2021). The impact of economic crisis on cost structure configuration. Economics and Business Letters, 10(1), 87-94. https://doi.org/10.17811/ebl.10.1.2021.87-94

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Articles