Exploring the Sticky Costs Theory: Trends, Challenges, and Insights

Abstract

Over recent decades, accounting literature has grown significantly, with publications advancing the field. Traditional cost behaviour models assume costs are either fixed or variable, with a linear relationship between costs and activity. However, recent studies highlight the concept of 'sticky costs', where costs increase more with rising activity than they decrease with falling activity. This asymmetry complicates cost management and impacts earnings predictability. Research identifies factors influencing sticky costs, such as managerial expectations and corporate governance. Despite its significance, knowledge of sticky costs remains limited in higher education curricula. This study reviews sticky cost research, compares it with traditional cost models, and assesses its presence in higher education. By analysing articles from top journals over 20 years, this work enhances understanding of sticky costs, promoting better cost management, quality education, and sustainable economic growth aligned with the United Nations Sustainable Development Goals.