An Analysis of the Efficiency of Common Costs in Large-Scale Merchandising Business (Groups)

摘要

Business costs mainly comprise of specific costs and common costs. What are the components of common costs and how to effectively control common costs are becoming more and more important issues to business performances. Especially for those large-scale merchandising business (groups), with the expanding scale of businesses, the proportions of common costs are growing, how to control the occurrence of common costs, determine the optimal scale and structure of common costs, and ensure the effective inputs of common costs are the critical problems to be discussed and tackled urgently. This paper begins with the structures of common costs, introduces Data Envelopment Analysis (DEA) method to analyze and evaluate the structure of common costs, and eventually provide large-scale businesses with scientific and rational decision-makings on effective control of common costs.