Production capacity and asymmetric costs under nonlinear relationship

The attention to capacity utilization in the cost accounting literature, the gap is related to mechanisms and effects conditions costs responses to capacity utilization changes. Based on asymmetric cost theory, the study develop an explaining how and under which conditions perceived capacity utilization affects the degree of asymmetric costs. The results indicated that perceived capacity utilization interacts with capacity changes to predict costs stickiness. This article study supported the professional understanding of capacity utilization and has key implications for managers' practices.