International Journal of Academic Management Science Research (IJAMSR)   Year: 2019 | Volume: 3 | Issue: 5 | Page No.: 54-59 Operational Cost and Accounting Profit: An Heterogeneous Causality based on Wavelet Multiresolution Approach ABATA Matthew Adeolu (PhD), GARUBA Atanda Akeem (FCTI, FCA) Abstract: In this paper, we investigate the bi-directional causality between operating cost and accounting profit for a sample of Nigerian manufacturing companies over the period 2007 to 2018. We employ maximum overlapping discrete wavelet transform (MODWT) with Dimetriscu-Hurlin Granger no causality method for this investigation. The results show that bidirectional influences exist between operational cost and accounting profit at different timescales. However, much of this influence runs from operational cost to accounting profit in the anticipated short run dynamics. Therefore, we recommend that manager should hedge factor prices.