Research On Theory And Application Of Enterprise Cost Driver Selection And Combination

Since the 1980s, the appearance of advanced manufacturing environment has made enormous impact on the traditional cost accounting system and Activity-Based Costing (ABC) emerges as the times require. The accounting circle has increasingly attached importance to activity cost driver theory, which is the core category of ABC. The research on cost driver has its significant theoretical meaning as well as enormous applicative value.We use qualitative method and quantitative method to analyze cost driver selection theory and cost driver optimization theory. The paper will firstly rebuild the frame of cost driver theory. Secondly, the paper will analyze the factors which influence the selection of activity cost drivers and draw up the principles and methods for selecting activity cost drivers. In order to improve comparison, it will introduce linear regression and partial correlate into cost driver decision model. Thirdly, the paper will lay down accuracy standard on the mergence of activity cost driver and make a systematic study on cost driver method of combination, including a cost driver method of matrix combination and a merging model of multiple cost drivers.The paper will verify the theories and methods by analyzing certain cases. And the application of cost driver will enhance the application of ABC in our country.