Lambert, Sherwood Lane; Krieger, Kevin; Mauck, Nathan - In: International Journal of Financial Studies : open … 12 (2024) 1, pp. 1-19
sales is "much less" sticky than depreciation and SG&A; hence, we use the cost of sales as a proxy for the total variable … costs and depreciation and SG&A as proxies for the sticky fixed costs. We introduce a new adjustment to the textbook …