Explaining the Relationship Between Sticky of Expenses with Prediction Error of Profit in Tehran Stock Exchange

One of the basic assumptions of management accounting illustrate that costs changes has a significance Relationship with increasing and decreasing in the level of activity, recently after being raised of sticky costs issue by Anderson and his colleagues this assumption was discussed. It means Increases in costs by increasing the more activity level of reduction in costs is exchange for the reduction in the level of activity. Anderson et al (2003) changed the expression of Cost behavior to sticky costs. The Subject profit forecast error is one of the issues that can affect investment decisions to hold or transfer of shares, because purchase of shares of the new companyʹs stock is riskier process than other companies; Because of its lack of trading Background, historical information related to their is low. Accordingly, in prediction two fundamental goals follow: The first one obviously is the proper planning and second one is Familiarity and deployment of predictive techniques using predictive techniques for decision making and problem solving process. The aim of this study was to investigate the relationship between forecast error of earnings and sticky cost in Tehran Stock Exchange. To achieve this aim, a main hypothesis and sub-hypothesis has been proposed, and to test hypotheses data 108 firms listed companies in Tehran Stock Exchange using systematic sampling purposefully selected, and data of the period between 2007 to 2013 was used for statistical analysis. Finally, the results indicate that There is an inverse relationship between sticky costs and forecast error of earnings, and also between sticky cost of goods sold and sticky costs of sales.