The Cost Behavior Analysis Through Regression Models and its Application in Managerial Decision-Making Process

Abstract: Cost management is one of the most important issues of corporate performance and corporate financial management. This study compares four models that predict cost behavior. The total overhead costs (TOC), overhead costs influenceable (IOC) and overhead costs uninfluenceable (UOC) and for the purpose of examination of asymmetric cost behavior there was analyzed log-ratio transformation UOC model. The results indicate that UOC is significantly affected by the production in kg (Qkg, p=0.0063) and the total production time in min (Tmin, p=0.0021). Total overheads costs are significantly affected by the total production time in min (p=0.0478). From the results of transformed model we believe that asymmetric cost behavior is affected by asymmetric behavior of the production in kg in proportion to the production time.