The Determination of Cost Drivers under Activity-Based Costing

摘要

The activity-based costing divides the business activities of enterprise into a series of activities, and it indirectly calculates the product costs by the measurement of activity costs. Cost driver reveals the reasons for implementing activities and the measuring index of the level of activities consuming resources. Therefore, research on cost driver and its selection method becomes the key to effectively implementing activity-based costing. Beginning with the meaning of cost driver and its characteristics, this article analyses its classification, and then, focuses on its selection method.