Abstract—This research is the kind of practical research and with use of Analyzing information contained in income statements of companies listed in Tehran Stock Exchange for the period 2000 to 2003 is conducted. The aim of this research is determine the causal relationship of sales income and expenses and evaluation of costs stickine ss. Costs stickiness means that with activity increase, Costs are increasing faster than when activity decrease and costs decreasing. For example, if sales increase 10% Expenses increased 9% But if sales revenue decreased 10 %( equal to increase level) costs decreased 8%, In such a situation the costs is sticky. In this study the stickiness of raw material costs, direct labor costs and overhead costs using the relationship between sales revenue and each of the costs by three-variable regression is investigated. With the results of this study Overhead costs are sticky but the cost of raw materials and direct labor costs are not sticky.
Index Terms—Costs, sales revenue, stickiness, three-variable regression.
M. Nematollahi is with Department of Accounting, Firoozabad Branch, Islamic Azad University, Firoozabad, Iran (e-mail:firstname.lastname@example.org).
M. H. Ghaemi is with Imam Khomeini International University.
Cite: Mohammad Hossein Ghaemi and Masoumeh Nematollahi , "Study on the Behavior of Materials, Labor, and Overhead Costs in Manufacturing Companies listed in Tehran Stock Exchange," International Journal of Trade, Economics and Finance vol. 3, no. 1, pp. 19 -24, 2012.