Selection And Combination Research Of Multiple Cost Drivers In ABC Calculation

Activity-based costing(ABC),as an advanced measuring cost method,has been adopted by many enterprises,which fully proves the strong vitality of activity-based costing.Cost driver theory is the core theory of activity based costing,which directly affects the success of ABC method.So it is very important to study cost driver theory for applying ABC method.According to summary of the research results of domestic and foreign,the research of cost driver is mainly focused on qualitative research,but quantitative research results are less.The majority of domestic researches were based on foreign research results.It is the failure to become a system;a lot of research is simply the translation of foreign research results,and did not achieve substantive results.In the research of the cost driver,the two key questions,the cost driver retention and the number,we still not put forward a reasonable and universally applicable solution.Aiming at the selection of cost drivers and the combination of research,this paper try to provide a more effective and intuitive the model of activity cost driver selection and combination of method.The first,review of the theory and method of cost driver selection and merging;on this basis,introduce statistical measurement methods,design cost drivers combination model by using the statistical software Stata to find the most effective cost driver combination method achieving cost drivers combination at the cost of minor cost loss.Finally in this paper,give an example,using the cluster analysis method,which achieve the cost drivers classified.By the method of principal component analysis,determine the number of cost drivers for selection.Combined with the clustering analysis results,ultimately determine the cost drivers left.it is an a tangible,practical and feasible reference to adopt ABC method,which provide the operational guidance for practical work.The innovation of this paper is based on the theory and literature review,use clustering method,principal component analysis and stepwise regression analysis and other statistical advanced methods to realize the selection and combination of multiple cost drivers with cost losses as little as possible,which provides a feasible method for the ABC method application in China.