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Analyzing the Classical and Chandler’s Conceptions of the Cost Theory in the Long Run
Klymova S. O., Yatsyna V. V.

Klymova, Svitlana O., and Yatsyna, Viktoriia V. (2023) “Analyzing the Classical and Chandler’s Conceptions of the Cost Theory in the Long Run.” Business Inform 10:227–232.
https://doi.org/10.32983/2222-4459-2023-10-227-232

Section: Economics of Enterprise

Article is written in Ukrainian
Downloads/views: 4

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UDC 657.471

Abstract:
The aim of the article is to study both the classical and Chandler’s conceptions regarding the cost theory in the long run and determine their differences. Proceeding from the current realities of increasing the role of new technologies and their impact on the competitiveness of enterprises, the article proves the need to introduce a new type of costs – «one-time» costs. The innovative essence of these costs is disclosed, which makes it possible to consider one-time costs as those that correspond to the intensive direction of expansion of production, as well as to separate them from conditionally fixed and variable costs. The possibility of the impact of one-time costs (as costs associated with the acquisition or development of new technologies) on the scale effect is also considered. It is proved that it is the distribution of one-time costs on the volume of production that allows the enterprise to achieve a positive scale effect much faster and minimize its costs. It is shown that the synergistic effect is an important component in strategic management and business development, but it can also be negative in the case when the interaction of factors leads to a negative impact or increases undesirable consequences. The article notes the reason for the absence of a negative scale effect in the Chandler’s conception, which explains the desire of many enterprises to merge. This desire is also explained by the existence of fixed and variable costs in the long run in Chandler’s conception, in contrast to the classical theory, where there are only variable costs in the long run. The possibility of further determining and applying the optimal structure and rate of change of one-time and conditionally fixed costs per unit of production in order to improve the efficiency of production and competitiveness of enterprises is considered.

Keywords: conditionally fixed costs, one-time costs, synergistic effect, positive and negative scale effect, competitiveness of enterprise.

Bibl.: 8.

Klymova Svitlana O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of General Economic Theory, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: [email protected]
Yatsyna Viktoriia V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of General Economic Theory, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

List of references in article

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Butynets, F. F. “Vytraty vyrobnytstva ta yikh klasyfikatsiia dlia potreb upravlinnia“ [Production Costs and Their Classification for Management Needs]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu. 2012. https://eztuir.ztu.edu.ua/bitstream/handle/123456789/3168/2.pdf
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Chandler, A. D. Jr. The Visible Hand. The Managerial Revolution in American Business. Cambridge. Mass, 1977.
Xin, Mei et al. “Evaluation on the Synergistic Effect of Production, Sales and R & D after Enterprise's M & A“. In Proceedings of the 2015 International Conference on Management Science and Management Innovation, 2015. DOI: 10.2991/msmi-15.2015.37
Chernetska, O. V. “Sutnist ta znachennia synerhetychnoho efektu v systemi upravlinnia na pidpryiemstvi“ [The Essence and Meaning of a Synergistic Effect in the Management of the Enterprise]. Hlobalni ta natsionalni problemy ekonomiky. 2014. http://global-national.in.ua/archive/2-2014/157.pdf
Pidvalna, O. H., and Koziar, N. O. “Synerhiinyi efekt v menedzhmenti“ [Synergistic Effect in Management]. Efektyvna ekonomika. 2013. http://www.economy.nayka.com.ua/?op=1&z=1865

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