The Survey of Asymmetric Cost Behavior in Terms of a Two- Driver model of Cost Stickiness and Cost Inertia

One of basic management accounting assumptions suggests that changes costs have proportional relationship with increasing and decreasing activity level. But this assumption has been discredited by introducing discussion of costs stickiness. Beside, cost inertia is related with change in property, plant and equipment. This study investigates the asymmetric cost behavior in terms of two-driver model of cost stickiness and cost inertia. The elective examples of research include 91 Tehran Stock Exchange listed companies for period of 7 years from 1387 to 1393. Multivariate Regression pattern have been used to analyze the data and examination hypotheses of study. The results of study indicates that in first hypothesis there is a meaningful relation between property, plant and equipment (PP&E) as an additional cost driver and enhancement the empirical specification of the asymmetric cost behavior model. There for the first hypothesis of study is confirmed. By analyzing second hypothesis it was concluded that cost inertia in resources driven by property, plant and equipment (PP&E) is not greater than the cost stickiness in resources driven by sales. There for the second hypothesis of study is not accepted.