The Role of Cost Structure in Decision Making: A Systematic Literature Review

https://doi.org/10.35912/jakman.v7i1.4986
Published: Dec 9, 2025

Abstract:

Purpose: This study explores how cost structure analysis supports managerial decisions, aiming to enhance strategic and relevant cost accounting practices across diverse business sectors.

Methodology/approach: This research uses the Systematic Literature Review (SLR) method based on the PRISMA protocol. Literature was retrieved from the Scopus and Web of Science databases for the period 2015-2025, with a focus on articles that discuss the relationship between cost structure, accounting information, and managerial decision making.

Results/findings: The review highlights diverse cost analysis approaches—ABC, TDABC, optimization, and environmental modeling—that support strategic decisions. Despite benefits in pricing and resource allocation, challenges like data inconsistency and system complexity persist. Findings stress the importance of adaptable, integrated systems for effective cost management in dynamic environments.

Conclusion: This study highlights the strategic role of cost structure analysis in managerial decision-making, supporting pricing, planning, and resource efficiency. Despite varied approaches like ABC and TDABC, challenges persist, data inconsistency, complexity, and limited organizational capacity. The findings stress the need for adaptive, tech-driven cost systems.

Limitations: This study is limited to ten articles from Scopus and WoS, potentially restricting generalizability across industries, regions, and evolving cost structure practices. Future research should explore broader sectors to enhance the relevance and applicability of cost analysis in dynamic business environments.

Contribution: This study contributes to managerial accounting by guiding practitioners, researchers, and educators in enhancing cost structure analysis for strategic decision-making across various industries.

Keywords:
1. Activity-Based Costing
2. Cost Structure Analysis
3. Managerial Decision-Making
4. Strategic Cost Management
5. Systematic Literature Review
Authors:
Yuda Satria Nugraha
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Nugraha, Y. S. (2025). The Role of Cost Structure in Decision Making: A Systematic Literature Review. Jurnal Akuntansi, Keuangan, Dan Manajemen, 7(1), 149–165. https://doi.org/10.35912/jakman.v7i1.4986
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Vol. 7 No. 1 (2025): Desember
Articles
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References

    Akulenko, N., Esina, A., & Kucherenko, A. (2020). Current trends in changes of the cost structure of industrial enterprises in Russia. Paper presented at the IOP Conference Series: Materials Science and Engineering.

    Alexopoulou, S., Balios, D., & Kounadeas, T. (2024). Essential factors when designing a cost accounting system in Greek manufacturing entities. Journal of Risk and Financial Management, 17(8), 366. doi:https://doi.org/10.3390/jrfm17080366

    Astuti, D. D., Surbakti, L. P., & Wijayanti, A. (2021). Pengaruh Independensi dan Keahlian Komite Audit Terhadap Manajemen Laba Riil dengan Kualitas Audit Sebagai Variabel Moderasi. Jurnal Akuntansi, Keuangan, dan Manajemen, 2(4), 345-358. doi:https://doi.org/10.35912/jakman.v2i4.564

    Barouch, G., & Bey, C. (2018). Cost of quality and process model: improving accounting tools for attaining higher environmental efficiency. Journal of cleaner production, 181, 192-200. doi:https://doi.org/10.1016/j.jclepro.2017.12.135

    Cakranegara, P. A. (2021). Investasi hijau: mengintergrasikan faktor enviromental, social dan governance dalam keputusan investasi. Jurnal Akuntansi, Keuangan dan Manajemen, 2(2), 103-114.

    Cardoni, A., Paradisi, A., & Hiebl, M. (2023). Management accounting implementation in SMEs: A Structured Literature Review. Management Control: supplemento 2, 2023, 189-214.

    Chen, C. X., Liang, J., Yang, S., & Zhu, J. (2024). The bullwhip effect, demand uncertainty, and cost structure. Contemporary Accounting Research, 41(1), 195-225. doi:https://doi.org/10.1111/1911-3846.12908

    Cohen, S., & Kaimenaki, E. (2011). Cost accounting systems structure and information quality properties: an empirical analysis. Journal of applied accounting research, 12(1), 5-25. doi:https://doi.org/10.1108/09675421111130586

    Darkwa, P. (2022). Assessment of Management Accounting Decision Making in Banking: Alignment and Appropriation of Distribution Cost. Open Journal of Accounting, 11(2), 180-198.

    Diener, F. (2020). Empirical evidence of a changing operating cost structure and its impact on banks’ operating profit: The case of Germany. Journal of Risk and Financial Management, 13(10), 247. doi:https://doi.org/10.3390/jrfm13100247

    Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376-389.

    Gutiérrez, M. (2021). Making better decisions by applying mathematical optimization to cost accounting: An advanced approach to multi-level contribution margin accounting. Heliyon, 7(2). doi:https://doi.org/10.1016/j.heliyon.2021.e06096

    Hadid, W., & Hamdan, M. (2022). Firm size and cost system sophistication: The role of firm age. The British Accounting Review, 54(2), 101037. doi:https://doi.org/10.1016/j.bar.2021.101037

    Halati, A., & He, Y. (2018). Intersection of economic and environmental goals of sustainable development initiatives. Journal of cleaner production, 189, 813-829. doi:https://doi.org/10.1016/j.jclepro.2018.03.322

    Henri, J.-F., Boiral, O., & Roy, M.-J. (2016). Strategic cost management and performance: The case of environmental costs. The British Accounting Review, 48(2), 269-282. doi:https://doi.org/10.1016/j.bar.2015.01.001

    Jiang, W., & Sun, Y. (2022). Chairman individualism and cost structure decisions. China Journal of Accounting Studies, 10(4), 503-527. doi:https://doi.org/10.1080/21697213.2022.2143682

    Losaladjome Mboyo, H., Huo, B., Mulenga, F. K., Mabe Fogang, P., & Kaunde Kasongo, J. K. (2025). Distribution of Operating Costs Along the Value Chain of an Open-Pit Copper Mine. Applied Sciences, 15(3), 1602. doi:https://doi.org/10.3390/app15031602

    Lueg, R., & Ilieva, D. (2024). Customer Profitability Analysis in decision-making–The roles of customer characteristics, cost structures, and strategizing. Plos one, 19(5), e0296974. doi:https://doi.org/10.1371/journal.pone.0296974

    Manan, M. A., & Hasnawati, S. (2022). Pengaruh good corporate governance terhadap financial distress yang di kontrol oleh ukuran perusahaan pada perusahaan industri sektor manufaktur di Indonesia. Jurnal Akuntansi, Keuangan, dan Manajemen, 3(4), 279-292.

    Martiza, B. S., Tifani, N. L., & Mukhtaruddin, M. (2024). Management Accounting Innovations and Firm Performance: The Role of Institutional and Market Forces. International Federation of Research and Discovery, 1(2), 13-18. doi:https://doi.org/10.70146/ebmv01i02.002

    Mohammadi, F., Mohebbi-Zarrindarreh, A., & Rezayatmand, R. (2022). The Trend of Current Cost Structure in the Selected Hospitals of Isfahan University of Medical Sciences, 2011-2020. Journal of Health Administration, 25(2), 26-44.

    Muñoz, M. A., Pineda, S., & Morales, J. M. (2022). A bilevel framework for decision-making under uncertainty with contextual information. Omega, 108, 102575. doi:https://doi.org/10.1016/j.omega.2021.102575

    Nemeschansky, B., von der Heidt, T., & Kim, P. B. (2020). Customer-driven menu analysis (CDMA): Capturing customer voice in menu management. International Journal of Hospitality Management, 91, 102417. doi:https://doi.org/10.1016/j.ijhm.2019.102417

    Nielsen, L. B., Mitchell, F., & Nørreklit, H. (2015). Management accounting and decision making: Two case studies of outsourcing. Paper presented at the Accounting Forum.

    Novák, P., Dvorský, J., Popesko, B., & Strouhal, J. (2017). Analysis of overhead cost behavior: case study on decision-making approach. Journal of International Studies. doi:https://doi.org/10.14254/2071-8330.2017/10-1/5

    Pavlatos, O., & Paggios, I. (2009). A survey of factors influencing the cost system design in hotels. International Journal of Hospitality Management, 28(2), 263-271. doi:https://doi.org/10.1016/j.ijhm.2008.09.002

    Puumalainen, A., Elonheimo, O., & Brommels, M. (2020). Costs structure of the inpatient ischemic stroke treatment using an exact costing method. Heliyon, 6(6). doi:https://doi.org/10.1016/j.heliyon.2020.e04264

    Razak, A., Guritno, Y., & Putra, A. M. (2021). Pengaruh Ukuran Perusahaan, Net Profit Margin, dan Total Asset Turn Over terhadap Pertumbuhan Laba. Jurnal Akuntansi, Keuangan, dan Manajemen, 3(1), 1-13. doi:https://doi.org/10.35912/jakman.v3i1.566

    Siswantoro, S. (2020). Pengaruh faktor tekanan dan ukuran perusahaan terhadap kecurangan laporan keuangan. Jurnal Akuntansi, Keuangan, dan Manajemen, 1(4), 287-300. doi:https://doi.org/10.35912/jakman.v1i4.76

    Susilowati, E. (2023). Cost Management and Strategic Decision Making: The Role of Managerial Accounting. Atestasi: Jurnal Ilmiah Akuntansi, 6(1), 457-473. doi:https://doi.org/10.57178/atestasi.v6i1.855

    Trivani, S. A., Salsabila, N. S., Ramadhany, A., Syahnda, N., & Mukhtaruddin, M. (2025). Systematic literature review: cost-volume-profit analysis of managerial decisions in MSMEs. Formosa Journal of Multidisciplinary Research, 4(5), 2015-2026. doi:https://doi.org/10.55927/fjmr.v4i5.170

    Yaser Saleh, Q., Barakat AL-Nimer, M., & Abbadi, S. S. (2023). The quality of cost accounting systems in manufacturing firms: A literature review. Cogent Business & Management, 10(1), 2209980. doi:https://doi.org/10.1080/23311975.2023.2209980

    Yu, K., He, Q., & Chen, P. (2025). Enterprise cost accounting and control based on job costing method. J. COMBIN. MATH. COMBIN. COMPUT, 127, 6603-6619. doi:https://doi.org/10.61091/jcmcc127a-366%20

    Zhao, L., & Yang, Z. (2022). Time-Driven Activity-Based Cost Expansion Model. Journal of Engineering, Project, and Production Management, 12(2), 116. doi:https://doi.org/10.32738/JEPPM-2022-0011

  1. Akulenko, N., Esina, A., & Kucherenko, A. (2020). Current trends in changes of the cost structure of industrial enterprises in Russia. Paper presented at the IOP Conference Series: Materials Science and Engineering.
  2. Alexopoulou, S., Balios, D., & Kounadeas, T. (2024). Essential factors when designing a cost accounting system in Greek manufacturing entities. Journal of Risk and Financial Management, 17(8), 366. doi:https://doi.org/10.3390/jrfm17080366
  3. Astuti, D. D., Surbakti, L. P., & Wijayanti, A. (2021). Pengaruh Independensi dan Keahlian Komite Audit Terhadap Manajemen Laba Riil dengan Kualitas Audit Sebagai Variabel Moderasi. Jurnal Akuntansi, Keuangan, dan Manajemen, 2(4), 345-358. doi:https://doi.org/10.35912/jakman.v2i4.564
  4. Barouch, G., & Bey, C. (2018). Cost of quality and process model: improving accounting tools for attaining higher environmental efficiency. Journal of cleaner production, 181, 192-200. doi:https://doi.org/10.1016/j.jclepro.2017.12.135
  5. Cakranegara, P. A. (2021). Investasi hijau: mengintergrasikan faktor enviromental, social dan governance dalam keputusan investasi. Jurnal Akuntansi, Keuangan dan Manajemen, 2(2), 103-114.
  6. Cardoni, A., Paradisi, A., & Hiebl, M. (2023). Management accounting implementation in SMEs: A Structured Literature Review. Management Control: supplemento 2, 2023, 189-214.
  7. Chen, C. X., Liang, J., Yang, S., & Zhu, J. (2024). The bullwhip effect, demand uncertainty, and cost structure. Contemporary Accounting Research, 41(1), 195-225. doi:https://doi.org/10.1111/1911-3846.12908
  8. Cohen, S., & Kaimenaki, E. (2011). Cost accounting systems structure and information quality properties: an empirical analysis. Journal of applied accounting research, 12(1), 5-25. doi:https://doi.org/10.1108/09675421111130586
  9. Darkwa, P. (2022). Assessment of Management Accounting Decision Making in Banking: Alignment and Appropriation of Distribution Cost. Open Journal of Accounting, 11(2), 180-198.
  10. Diener, F. (2020). Empirical evidence of a changing operating cost structure and its impact on banks’ operating profit: The case of Germany. Journal of Risk and Financial Management, 13(10), 247. doi:https://doi.org/10.3390/jrfm13100247
  11. Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376-389.
  12. Gutiérrez, M. (2021). Making better decisions by applying mathematical optimization to cost accounting: An advanced approach to multi-level contribution margin accounting. Heliyon, 7(2). doi:https://doi.org/10.1016/j.heliyon.2021.e06096
  13. Hadid, W., & Hamdan, M. (2022). Firm size and cost system sophistication: The role of firm age. The British Accounting Review, 54(2), 101037. doi:https://doi.org/10.1016/j.bar.2021.101037
  14. Halati, A., & He, Y. (2018). Intersection of economic and environmental goals of sustainable development initiatives. Journal of cleaner production, 189, 813-829. doi:https://doi.org/10.1016/j.jclepro.2018.03.322
  15. Henri, J.-F., Boiral, O., & Roy, M.-J. (2016). Strategic cost management and performance: The case of environmental costs. The British Accounting Review, 48(2), 269-282. doi:https://doi.org/10.1016/j.bar.2015.01.001
  16. Jiang, W., & Sun, Y. (2022). Chairman individualism and cost structure decisions. China Journal of Accounting Studies, 10(4), 503-527. doi:https://doi.org/10.1080/21697213.2022.2143682
  17. Losaladjome Mboyo, H., Huo, B., Mulenga, F. K., Mabe Fogang, P., & Kaunde Kasongo, J. K. (2025). Distribution of Operating Costs Along the Value Chain of an Open-Pit Copper Mine. Applied Sciences, 15(3), 1602. doi:https://doi.org/10.3390/app15031602
  18. Lueg, R., & Ilieva, D. (2024). Customer Profitability Analysis in decision-making–The roles of customer characteristics, cost structures, and strategizing. Plos one, 19(5), e0296974. doi:https://doi.org/10.1371/journal.pone.0296974
  19. Manan, M. A., & Hasnawati, S. (2022). Pengaruh good corporate governance terhadap financial distress yang di kontrol oleh ukuran perusahaan pada perusahaan industri sektor manufaktur di Indonesia. Jurnal Akuntansi, Keuangan, dan Manajemen, 3(4), 279-292.
  20. Martiza, B. S., Tifani, N. L., & Mukhtaruddin, M. (2024). Management Accounting Innovations and Firm Performance: The Role of Institutional and Market Forces. International Federation of Research and Discovery, 1(2), 13-18. doi:https://doi.org/10.70146/ebmv01i02.002
  21. Mohammadi, F., Mohebbi-Zarrindarreh, A., & Rezayatmand, R. (2022). The Trend of Current Cost Structure in the Selected Hospitals of Isfahan University of Medical Sciences, 2011-2020. Journal of Health Administration, 25(2), 26-44.
  22. Muñoz, M. A., Pineda, S., & Morales, J. M. (2022). A bilevel framework for decision-making under uncertainty with contextual information. Omega, 108, 102575. doi:https://doi.org/10.1016/j.omega.2021.102575
  23. Nemeschansky, B., von der Heidt, T., & Kim, P. B. (2020). Customer-driven menu analysis (CDMA): Capturing customer voice in menu management. International Journal of Hospitality Management, 91, 102417. doi:https://doi.org/10.1016/j.ijhm.2019.102417
  24. Nielsen, L. B., Mitchell, F., & Nørreklit, H. (2015). Management accounting and decision making: Two case studies of outsourcing. Paper presented at the Accounting Forum.
  25. Novák, P., Dvorský, J., Popesko, B., & Strouhal, J. (2017). Analysis of overhead cost behavior: case study on decision-making approach. Journal of International Studies. doi:https://doi.org/10.14254/2071-8330.2017/10-1/5
  26. Pavlatos, O., & Paggios, I. (2009). A survey of factors influencing the cost system design in hotels. International Journal of Hospitality Management, 28(2), 263-271. doi:https://doi.org/10.1016/j.ijhm.2008.09.002
  27. Puumalainen, A., Elonheimo, O., & Brommels, M. (2020). Costs structure of the inpatient ischemic stroke treatment using an exact costing method. Heliyon, 6(6). doi:https://doi.org/10.1016/j.heliyon.2020.e04264
  28. Razak, A., Guritno, Y., & Putra, A. M. (2021). Pengaruh Ukuran Perusahaan, Net Profit Margin, dan Total Asset Turn Over terhadap Pertumbuhan Laba. Jurnal Akuntansi, Keuangan, dan Manajemen, 3(1), 1-13. doi:https://doi.org/10.35912/jakman.v3i1.566
  29. Siswantoro, S. (2020). Pengaruh faktor tekanan dan ukuran perusahaan terhadap kecurangan laporan keuangan. Jurnal Akuntansi, Keuangan, dan Manajemen, 1(4), 287-300. doi:https://doi.org/10.35912/jakman.v1i4.76
  30. Susilowati, E. (2023). Cost Management and Strategic Decision Making: The Role of Managerial Accounting. Atestasi: Jurnal Ilmiah Akuntansi, 6(1), 457-473. doi:https://doi.org/10.57178/atestasi.v6i1.855
  31. Trivani, S. A., Salsabila, N. S., Ramadhany, A., Syahnda, N., & Mukhtaruddin, M. (2025). Systematic literature review: cost-volume-profit analysis of managerial decisions in MSMEs. Formosa Journal of Multidisciplinary Research, 4(5), 2015-2026. doi:https://doi.org/10.55927/fjmr.v4i5.170
  32. Yaser Saleh, Q., Barakat AL-Nimer, M., & Abbadi, S. S. (2023). The quality of cost accounting systems in manufacturing firms: A literature review. Cogent Business & Management, 10(1), 2209980. doi:https://doi.org/10.1080/23311975.2023.2209980
  33. Yu, K., He, Q., & Chen, P. (2025). Enterprise cost accounting and control based on job costing method. J. COMBIN. MATH. COMBIN. COMPUT, 127, 6603-6619. doi:https://doi.org/10.61091/jcmcc127a-366%20
  34. Zhao, L., & Yang, Z. (2022). Time-Driven Activity-Based Cost Expansion Model. Journal of Engineering, Project, and Production Management, 12(2), 116. doi:https://doi.org/10.32738/JEPPM-2022-0011