This study aimed to examine the factors that influence the cost of debt variable. The independent variables in this study were discretionary accrual and income volatility. The sample that the writer used in this study were public companies listed on the Indonesia Stock Exchange 2014-2018. Banking and companies that subject to final tax were excluded, including mining, mining, infrastructure, real estate, and construction companies. The data used were obtained from Bloomberg, Indonesia Capital Market Directory (ICMD), financial statements, and reading sources obtained by experts as a theoretical foundation. The analysis technique used in this study was weighted least square and used Gretl. Based on the tests that have been done in this study, we find that discretionary accruals had no effect on the cost of debt. Suggestions for future creditors in Indonesia should also consider the risk of tax avoidance and earning management as a basis for making decisions when they want to provide loans.
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