Research On Cost Stickiness Of Zoomlion

With the development of the new normal of China's economy,the light-weight upgrading of the economic structure of "made in China 2025" has brought new competitive pressure to the development of enterprises(especially manufacturing enterprises),under which enterprises attach more and more importance to the role of management accounting.The sub-classification of construction machinery industry in the manufacturing industry determines the overall level of China's industry and also relates to the healthy development of the national economy.The appearance of cost stickiness is a supplement to the traditional cost state theory and has become a hot topic in recent years.At present,the research on cost stickiness mainly observes its existence,formation reasons,influencing factors and economic consequences through samples,but lacks in-depth analysis on the characteristics and causes of cost stickiness of a single company.Based on this,this paper selects Zoomlion Heavy Industry Science and Technology Co.,Ltd.,a leading enterprise in the construction machinery Industry,as a case study to discuss its features of cost stickiness and influencing factors,hoping to provide an important reference for enterprise cost budgeting,planning and management.On the basis of a large number of literature reviews,this paper firstly expounds relevant concepts,and then makes a systematic study on the cost stickiness of Zoomlion based on the theory of adjustment cost,agency cost and management expectation.In this paper,Weiss model is used to measure Zoomlion's cost stickiness,and the conclusion that Zoomlion's cost stickiness exists is drawn.In addition,the reasons for the existence of cost stickiness are analyzed from three aspects of human capital intensity,capital intensity and macroeconomic environment.Secondly,it is found that the degree of cost stickiness of Zoomlion varies from year to year.Therefore,the influencing factors for the change of cost stickiness of Zoomlion are analyzed.Through the study found that degree of viscosity increased cost of Zoomlion caused by the implementation of the strategy of differentiation cost,improve,management of fixed assets accounted optimistic about the impact of on-the-job consumption motivation and management,and the cost of its viscosity,degree of decrease is due to the business of excess capacity,suppliers,the establishment of strategic alliance,the growth of executive compensation motivation and the improvement of the governance structure.Finally,some Suggestions are put forward to adjust the cost stickiness.Possible shortcomings in the research process: this paper only analyzed and studied the degree of cost stickiness and influencing factors of Zoomlion heavy section,and judged the extent of its cost stickiness only according to the industry level,without in-depth research on a reasonable range.In addition,the researchconclusion of this paper is only based on the analysis of a case,may not have a broad representative.