Abstract

This paper does analysis of effective cost management during economic slowdown. Our paper also focuses on way companies do cost management before and after an economic slowdown has occurred. In this paper we have analysed various ratios, multiples and proportions which provides clear indication on company’s effectiveness in cost management in its various stages of life and how vulnerable their capital structure is to sudden change in direction of economy. This paper does inter and intra industry analysis of cost, variables that add up to total cost.

Key words: Leverage, Business risk, Market risk