Authors : Hameed Ali Saleh, Abdul Qader Nayef Taayyh and Ali Nasser Alwan
Abstract: The research aims to measure the effect of changes in direct and indirect costs on revenues of production. The descriptive approach and the standard economic measurement approach were used in the formation of the model based on the multiple regression method in the analysis of Kofa Cement Factory data for the year 2016. The regression equation was estimated by using the least squares method. The results showed that the direct and indirect costs affected the revenues of production. This indicates that the independent variables direct and indirect costs explain the changes occurred in the revenues. The study recommended the necessity of adopting the variable (direct) cost method to determine the costs that vary with the volume of activity and those being charged on the revenues because fixed costs are period costs as well as the adoption of the variable cost in pricing the product after taking into consideration the wishes of customers and the behavior of competitors.
Hameed Ali Saleh, Abdul Qader Nayef Taayyh and Ali Nasser Alwan, 2019. Measuring the Effect of Direct and Indirect Costs on the Revenues of Kofa Cement Factory using the Multi Linear Regression Technique. International Business Management, 13: 300-306.