Effect of demand uncertainty on cost structure of Turkish manufacturing firms [Conference Object]

Abstract

The structure of operating costs of Turkish manufacturing firms between years 1995 and 2014 is tested in terms of their ?rigidity? in this paper. Rigidity is defined as the proportion of fixed costs to variable costs in cost structures. Additionally, the effect of demand uncertainty as measured by the standard deviation of net sales on the cost structure of operating costs is also tested. Results support that higher levels of demand uncertainty are associated with higher portions of fixed costs in the cost structure.