The Applying Of Cost Driver Selection And Combination In The Hospital Cost Management

The importance of cost management for the enterprise is obviously important, cost accounting is its basis. For a long time, accounting for indirect costs in the traditional Costing Methods has always been the crux of cost management. With the rapid development of science and technology, direct consumption of materials and labor are less and less, and indirect costs are more and more, so this method can not meet the enterprise's development. The Activity-Based Costing(as ABC) receives high attention ,because this method can accurately assign the indirect costs to products. Cost drivers as a core conception of ABC, it plays an important role in the application of the ABC. While the cost driver selection and combination is a necessary part in the application of cost drivers, and the study of this theory has important theoretical and practical significance.At this stage, in our hospital costing method is mainly full-cost accounting, it is traditional. But the indirect costs in the proportion of the whole is a great, so this can not provide accurate cost information and affect cost management in hospital. The ABC can solve these problems, and cost driver selection and combination can achieve the balance between cost accounting accuracy and the cost of information processing.This paper describes the cost driver theory. This theory includes the selection of cost drivers and the combination. And this paper focuses on the cost driver selection method, and compares the methods; analysis the cost drivers combined models, and compares several models; then proposes synthetically the procedures and Flow chart of cost driver selection and combination, which provides for practical application. Then, with the characteristics of the hospital, summarize the method and steps in hospital. Last, the hospital executive summary notes of the method and steps; Finally, the cases of hospital cost accounting verifies the above.