The influence of size on cost behaviour associated with tactical and operational flexibility

  • Josep Mª Argilés Bosch Department of Accounting. Facultat d’Econòmiques i Empresarials. Universitat de Barcelona. Av. Diagonal, 690. 08034 Barcelona
  • Josep García Blandón Department of Economics and Finance, Facultat d’Economia, IQS, Universitat Ramon Llull

Abstract

This paper contributes with an empirical analysis, using a sample of farms, on the influence of size on cost behaviour under operational and tactical flexibility. Results indicate that small farms behave advantageously with respect to biggest farms in situations of operational and tactical flexibility. On the one hand, the increase in indirect costs with product diversification is higher in bigger farms than in smaller. On the other hand, while most farms are flexible enough to avoid cost stickiness, the biggest face considerable rigidities in downsizing indirect costs when activity decreases.
Keywords Agricultural economics, Tactical flexibility, Operational flexibility, Cost behaviour, Size
Compartir
How to Cite
Argilés Bosch, J., & García Blandón, J. (2016). The influence of size on cost behaviour associated with tactical and operational flexibility. Estudios de Economía, 38(2), pp. 419-455. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/39445/43344
Section
Articles
Published
2016-03-31