Measuring Asymmetric Cost Behavior In Iraqi Industrial Companies

Abstract

The accounting literature has not established a comprehensive framework for monitoring asymmetric behavior, expectations of cost estimations more effectively. Thus, the research sought to emphasize the significance of asymmetric cost behavior in Iraqi economic units and contribute to developing a knowledge framework that incorporates it (asymmetric cost behavior). The departments of monetary units suffer from a lack of knowledge about cost management, which prevents them from making efficient and acceptable use of resources. They adhere to the traditional proportional theory of fixed and variable cost behavior, which is dependent on the level of production volume only. As the study topic was defined by a series of questions, the most essential of which was What are the conceptual and intellectual tendencies in the field of asymmetric cost behavior research? The study was conducted in the (industrial) sector and applied to a sample of (13) enterprises based on data available on the Iraq Inventory Exchange's website to accomplish the research's objectives and address its issues. Accounting equations and statistical techniques were used to process the data, and the findings were retrieved using statistical software (Eviews). The research came to several conclusions, including the following. First, the inventory index has a noticeable effect on the behavior of asymmetric costs, indicating that economic units want to keep resources and funding to satisfy future demand changes. The study made several recommendations, the most significant of which drew the attention of those responsible for managing economic units to the importance of studying and comprehending the asymmetric behavior of cost elements and the consequences of this behavior to obtain information for the various decisions made within the economic unit.