Study of adjusted profit and productivity forecast error of bazaar with using of cost behavior
Esmaeil Shahnazari1, Ghodratollah Talebnia2 & Reza Jamei3
2Department of Accounting, Islamic Azad University, Science and Research Branch, Tehran, Iran
3Department of Accounting, Kordestan University, Sanandaj, Iran
Abstract: Empirical evidence of this study suggests the existence of sticky behavior of costs and costs of the Tehran stock Exchange that is according to research conducted by Anderson and Mediros. The difference in sticky strength is due to the differences in the nature of operating fixed assets. If the possibility of reducing and adjusting level of operating assets be less in periods of declining revenue, the sticky strength would be higher. The results of this study include important information on how to hand the costs that can be shared by users especially accountants, managers, financial analysts and auditors in their assessment and decision making. The mast mentioned writings and discussions represents a method (for example: regression analysis) to estimate the average change in costs for per unit change in cost stimulus about how to handle expenses. The results also provide suggestions for administrators. Administrators can control and identify the bonding costs of company. They can reduce the adjustments to decrease the level of operating assets in periods of demand and sales level reduction through appropriate contrasts (for example: short term contrasts) for leafed operating assets and hire staff and reduce sticky tensity of costs.
[Esmaeil Shahnazari, Ghodratollah Talebnia & Reza Jamei. Study of adjusted profit and productivity forecast error of bazaar with using of cost behavior. Life Sci J 2013;10(1):684-694] (ISSN:1097-8135).http://www.lifesciencesite.com.
Key words: Sticky of costs, Spent costs sticky of sold goods, Cost behavior, Sticky of costs behavior, Profit forecast accuracy