The use of regression analysis as an approach to determine the fixed and Variable costs within total costs.

Author:   Their al-Shaher

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Abstract:
Through the analysis of the ledgers, tabulation and classification of costs to their types: Fixed costs, variable costs, and total costs could be done according to unscientific approach, because it relies on intuition and personal diligence by accountant.
This technique may move away from objectivity, and therefore, any decisions will be taken may be misleading and has nothing of reality, since they are based on subjective judgment to be wrong, some cases due to the lack or reliance on the scientific method. Accordingly, the idea of this research has come out of; we can apply one of the statistical methods for the identification of these costs in a scientific and objective, and this method is regression analysis. This research also included the theoretical background by showing the research problem and hypothesis and objectives and the analysis method, while the practical side included identifying variables (dependent and independent), and extract the results, then, to review the most important findings that have been reached by the researcher with recommendations.

Key Words: Regression analysis, variable costs, fixed costs, total costs.