Cost Structure of the Clothing Sector Companies Listed in Bovespa Using Linear Regression Analysis

Abstract

The cost structure is fundamental to the management companies of all sectors and sizes, it allows for better monitoring of economic performance and assists in decision making. The companies in the clothing industry that have a turnover of diversified processes require a continuous and rigorous monitoring of the costs of each operation and the identification of fixed and variable costs of each product. The goal is to study the cost structure of companies in the garment sector listed on Bovespa, with the use of linear regression analysis. To this end, data were collected quarterly net profit, net income and operating income of the three companies in the clothing listed at Bovespa. In that sense, this research is characterized as descriptive, documentary, using a quantitative approach. Data were collected at the site of Bovespa and analyzed by applying the linear regression analysis. As for the results it appears that: Botucatu Textil SA has fixed costs and expenses and higher costs and lower variable costs, Marisol SA presents costs and variable costs exceed the costs and fixed expenses. The contribution margin business has no significant difference. Although the three companies examined are of the same branch and open capital cost structure presents a considerable difference in costs and expenses and fixed costs and variable expenses.