There is a very direct relationship between cost cutting and the business cycle. Due to the ever-changing business cycle, where costs don't necessarily match the changes in revenues and profits, businesses are unable to react quickly enough or to see forward sufficiently enough to adjust their cost structures to react to how the business cycle is shifting, Scheumann explained.
As a result, companies are unable to adjust their Selling, General and Administrative (SG&A) cost structures rapidly enough to adjust for the downturn in the economy, or in their particular business cycle.
Consult with Hocking Denton Palmquist for proper year-end tax planning. We can best serve you by carefully planning your important financial decisions so they can be structured to minimize taxes.