Experimental study Of Adhesion behavior costs

Document Type : Research Paper

Authors

1 PhD of Accounting, Payame Noor University, Tehran, Iran.

2 PhD of financial Engineering, Islamic Azad University, Shahr-e-Qods Branch, Tehran, Iran

Abstract

Response of cost to changes in the level of activity is called cost behavior. Namely changes in costs are associated with increase and decrease their activity levels. Cost Adhesion means that cost when sales increase, go up, but when sales decrease, they don’t go down that much. The main purpose of this study, is to empirically examine the adhesion operating costs in the manufacturing companies at three levels included cost of goods sold, administrative and sale expense and other operating expenses in Tehran Stock Exchange companies during the period 1386 to 1395. The result showed that increased sharply in all three levels of costs for the same level of activity, was bigger than reduced costs levels for the same decrease in the level of activity. So, the cost of goods sold, administrative and sale expenses and other operating expenses have adhesion in cost behavior. There is also adhesion at the levels of total operating expenses.

Keywords

References

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History

  • Receive Date: 16 April 2018
  • Revise Date: 28 June 2018
  • Accept Date: 21 August 2018

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