Sticky Cost Behaviour: A challenge for Managers for a Conscientious Managerial Decision Making

The Aim of this paper is to examine the challenges the Manager face at the time of Business Decision Making strategy on its Stickiness of Cost. The investigation is to find whether the Managers have clear understanding of Cost stickiness and its complex phenomenon which will influence their decision. In most of the times the expectations of the Manager is to be the costs to be sticky on average, increasing more for a one percent increase in sales than they decline for a one percent decrease in sales. There are two reasons for this. The downward adjustment costs are often larger than upward adjustment costs, making it dis-proportionately costly to reduce committed resources firstly and Second, the long-term trends in Volume and Sales are predominantly positive in forecast hence the managers are typically more likely to be optimistic than pessimistic about future sales. This research paper discussed the nature and framework of Cost Behaviour in a nut-shell where the evidences shows and supports the new way of thinking about costs and implementation issues by discussing the occurrences of asymmetric cost behaviour influence the Managerial decision making which is global.