MANAGERS PERCEPTIONS OF THE IMPORTANCE OF SUPPLY, OVERHEAD AND OPERATING COSTS

Examines the way in which managers perceive the relative importance of the three costs as applied to professional service firms, financial s ervices firms and retail distribution and manufacturing. Managers' per ceptions may be determined by the nature of the business, the operatio nal focus and the opportunities for the control of costs. Examines the existing literature for indications of the importance attached to eac h of these costs. Concludes that managers have more discretion of the control of operating costs where they represent a high proportion of t he three types and where supply and overhead costs form a high proport ion of total costs, managers can exercise discretion by challenging ex isting industry recipes through restructuring their operations.