Correction Cost-Volume-Profit Analysis model by using Cost Stickiness and Conditional Conservatism

The Cost-Volume-Profit model is a common method for predicting sales and planning profit. Breakeven analysis is often used to predict the profit of a product or a set of products. The argument of this study is that phenomena such as cost stickiness and conditional conservatism may reflect two important adjustments in Cost-volume-Profit model. For this purpose, the data of 155 firms listed in Tehran’s Stock Exchange over the 2006-2013 period, and linear regression model were used. The results showed that cost stickiness and conditional conservatism significantly affect Cost-Volume-Profit model.