Robustness For Costing System To Error Under Dynamic Cost Object

With the development and improvement of people material level,typically individual needs of customers increase,which result that products,services and other cost objects are all changing.It is reflected that resources are reallocated and the robustness of cost system occurs deviation.However,most scholars mainly study the cost system under the existing cost objects,and little academic guidance is available on how to improve costing system robustness to errors under the dynamic cost object.This paper analyzes the research status at home and abroad on the activity cost system and errors,meanwhile,clear the concepts of measurement error,aggregation error,specification error and diversity in resource consumption including diversity in the size of cost pools,diversity in proportional resource consumption at each cost pool and diversity in resource sharing across the whole costing system.By analysis modeling based on the logic of Activity-based costing,we can get the quantitative relationship among overall error and different measurement error-diversity indicator combinations in the costing system,and compare the effect of various factors on costing systems' robustness.At the same time,we identify when cost objects changes,different diversity in resource consumption has different impact on cost accuracy,which include(1)the higher variance in proportional resource consumption,the worse is the robustness of the costing system,(2)as diversity in the dollar size of resource cost pools increase,robustness of the costing system to errors may not get worse,actually it depends on the quadratic sum of percentage of cost drivers allocated from the resource cost pool with high diversity to each cost object,and(3)robustness of the costing system maybe not get worse when the diversity in resource sharing increases.If the resource driver or activity driver exist measurement error,the higher diversity caused by the lower number of cost drivers or uneven distribution of cost drivers,the greater is the robustness.All above results can enrich simulation researches.Meanwhile,this paper provides a basis for manager on how to reduce the overall error and configure limited resources to improve the coat accuracy under dynamic cost objects.