Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 209

Full Length Research Paper

Analysis of the determinants of asymmetric cost behavior: Theoretical foundation and implications

Sadri Lohrasp
  • Sadri Lohrasp
  • School of Accounting, University of Birmingham Dubai, Dubai, United Arab Emirates.
  • Google Scholar

  •  Received: 30 April 2024
  •  Accepted: 30 May 2024
  •  Published: 30 June 2024


This paper investigates the foundational theories and empirical evidence surrounding cost behavior and asymmetric cost behavior, exploring their implications for managerial decision-making, budgeting procedures, performance evaluation systems, and overall organizational performance. Through a thorough review of relevant literature and theoretical frameworks, as well as an analysis of empirical evidence, the study highlights the significance of understanding cost variability within organizations. Key determinants such as production capacity constraints, market competition dynamics, technological advancements, and organizational characteristics are identified as drivers of asymmetric cost behavior, shaping managerial decisions and organizational outcomes. The research underscores the importance of integrating insights from cost behavior analysis into management practices to optimize resource allocation, adapt to market dynamics, and achieve strategic objectives. The findings are particularly relevant for organizations in the United Arab Emirates (UAE), offering valuable insights to support informed decision-making, enhance operational efficiency, and drive sustainable growth in a dynamic business environment.


Key words: Cost asymmetry, cost stickiness, cost behavior.