Abstract

The research deals with a study to track the behavior of sticky costs, as this behavior varies in response to an increase in the volume of activity than in the case of decline, and thus costs may increase with an increase in the level of activity at a rate greater or less than its decrease in the case of a decrease in the level of activity, so that the so-called sticky behavior of costs appears. The opposite behavior of the sticky.This research aims to study, analyze and discuss the new approach to analyzing cost behavior, and its implications for the indicative results and effects of management forecasts for budget estimates and how this behavior interferes with the process of preparing budgets. Rationale for the budgets for the study years from 2015 to 2019 to find out the extent of the variance in budget estimates.