The Effect of Sticky Cost to Profit Prediction using the Cost Variability and Stickiness Model at Manufacturing Industry

Sri Mulyati, Dy Satria, Murhaban, Maulida, Wardhiah

2019

Abstract

This study aims to examine the effect of sticky cost on profit prediction using the cost variability and cost stickiness (CVCS) model. This study also tries to look at the relationship between sticky cost behavior on profit predictions. In this study sticky costs are calculated with variables, namely sales, administration and general costs. While profit predictions are measured by the model of cost variability and cost stickiness (CVCS). Cost behavior has traditionally been an important aspect of management accounting for analyzing profit for managers. This cost behavior study is important, because of the uncertain future demand faced by managers. The type of data used in this study is secondary data. This research was conducted by taking a sample of 62 companies from 144 companies on the manufacturing industry listed on the Indonesia Stock Exchange from 2014-2016. Sampling is done by purposive sampling method. Processing data is done by multiple linear regression techniques and has met the classical assumption test requirements. This study shows the results that the cost of sales (X1 ) does not affect the profit prediction (Y), The second hypothesis testing X2 has a significant effect on Y. The results of this study indicate the amount of increase in sales, administrative and general costs when net sales rise is higher than the magnitude of decrease in sales, administrative and general costs when net sales fall. This means that there are sticky cost behaviors in sales, administration and general costs in IDX manufacturing industry companies.

Paper Citation

in Harvard Style

Mulyati S., Satria D., Murhaban., Maulida. and Wardhiah. (2019). The Effect of Sticky Cost to Profit Prediction using the Cost Variability and Stickiness Model at Manufacturing Industry. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 364-373. DOI: 10.5220/0009870500002900

in Bibtex Style

@conference{miicema19,
author={Sri Mulyati and Dy Satria and Murhaban and Maulida and Wardhiah},
title={The Effect of Sticky Cost to Profit Prediction using the Cost Variability and Stickiness Model at Manufacturing Industry},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={364-373},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009870500002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - The Effect of Sticky Cost to Profit Prediction using the Cost Variability and Stickiness Model at Manufacturing Industry
SN - 978-989-758-582-1
AU - Mulyati S.
AU - Satria D.
AU - Murhaban.
AU - Maulida.
AU - Wardhiah.
PY - 2019
SP - 364
EP - 373
DO - 10.5220/0009870500002900