Study On The Cost Driver Based On ABC

In 1980s Activity –Based Costing was brought forward. Till now ABC is accepted by most developed country not only in theory but in practice, such as America. ABC overcomes the unfair for indirect expense of traditional costing measure, which induces the distortion of accounting information. Activity-based costing management under ABC makes the cost management to activity levels, which brings the true impersonal financial information for decision-making in a company. As a new theory, ABC has advantage beyond measure compared with traditional costing measure, at the same time it has the shortcoming. People perfect ABC at all times in order to make it mature in theory and practice.ABC was introduced to our country with a rapid speed since 1990s, which arouse attention widely. Although ABC was accepted in theory its application was rare. The reasons include two aspects: the first is people do not know it well, the second is the application cost is large. The first problem is not hard to settle down. The second problem is the vital. In order to enhance the application of ABC in our country the only way is to find the measure of decreasing the application cost.The dissertation focus on the conception and theory of the cost driver on the base of introduction of ABC' conception, measure principle and measure procedure. The content of the cost driver include the conception, the classification, how to choose the cost driver, how to elect a cost driver form others through mathematical regression, cost drivers optimization theory and model and validating if the theory and the model are right and applicable. The dissertation seeks to decrease the application cost through the cost driver optimization in order to enhance the application of ABC in our country.