Asymmetric Cost Behavior and Its Effect on Employment Sustainability: A Case Study

This study aims to examine the effect of asymmetric cost behavior on employment sustainability, based on the premise that costs may respond differently to changes in the level of activity when sales increase compared with when they decrease, which may in turn influence managerial decisions regarding resource allocation and employment, To achieve this objective, the study was applied to data from Ahlia Vegetable Oil Industry Company, using quarterly data covering the period 2010–2025, with a total of 64 observations, Asymmetric cost behavior was measured separately for selling, general, and administrative expenses (SG&A) and cost of goods sold (COGS), while employment sustainability was measured using the employee retention rate, The effect of asymmetric cost behavior on employment sustainability was then tested using linear regression analysis, The results revealed a negative statistically significant effect at the 10% significance level of asymmetric behavior in selling, general, and administrative expenses on employment sustainability, In contrast, the asymmetric behavior of cost of goods sold did not have a statistically significant effect on employment sustainability, These findings suggest that the persistence of certain administrative, selling, and general expenses during periods of declining activity may increase the burden associated with underutilized resources, potentially encouraging management to adjust available resources, including labor. By contrast, cost of goods sold is more closely associated with raw materials, production volume, and manufacturing costs, which may explain the absence of a direct statistically significant effect on employment sustainability, The study recommends that management should continuously monitor cost behavior and analyze cost asymmetry, particularly with regard to selling, general, and administrative expenses, in order to improve resource utilization and support employment sustainability.