Universal Journal of Accounting and Finance Vol. 1(1), pp. 1 - 8
DOI: 10.13189/ujaf.2013.010101
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Utilizing Data Mining and Factor Analysis for Identifying Activity Base Costing Cost Drivers in Iranian Bank

Ali Asghar Anvary Rostamy^1,*, Tahereh Aliheidri Bioki², Farideh Bakhshi Takanlou³, Amin Anvary Rostamy^4
1 Professor, Tarbiat Modares University (TMU), Chair Department of Accounting, Tehran, Iran
² PhD Student of Industrial Engineering, Yazd University, Yazd, Iran
³ Accounting Student, University of Applied Sciences & Technology Tehran, Iran
⁴ Department of Software Engineering, Amirkabir University of Technology, Tehran, Iran

ABSTRACT

Most of firms are interested to know about the real cost of products and services they provide. In order to measure the real cost, several methods and techniques have been provided in literature. One of the most important and prominent methods is the Activity Based Costing (ABC) method. Determination of cost drivers in ABC is regarded as a very difficult and tiresome task. Although various methods have been introduced for this purpose but each method suffers from certain disadvantages. This paper introduces the Data Mining (DM) and Factor Analysis (FA) methods to improve the effectiveness of the ABC method. The proposed combined methods let decision makers to consider several cost drivers respect to their effects on costing, simultaneously. In 2010, we have applied the proposed method in Export Development Bank of Iran: EDBI (one of the Iranian leading banks). The results confirmed the usefulness and effectiveness of the proposed methods for bank ABC system and its economic decisions.

KEYWORDS
Cost Driver, Activity Based Costing, Data Mining, Factor Analysis

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Ali Asghar Anvary Rostamy , Tahereh Aliheidri Bioki , Farideh Bakhshi Takanlou , Amin Anvary Rostamy , "Utilizing Data Mining and Factor Analysis for Identifying Activity Base Costing Cost Drivers in Iranian Bank," Universal Journal of Accounting and Finance, Vol. 1, No. 1, pp. 1 - 8, 2013. DOI: 10.13189/ujaf.2013.010101.

(b). APA Format:
Ali Asghar Anvary Rostamy , Tahereh Aliheidri Bioki , Farideh Bakhshi Takanlou , Amin Anvary Rostamy (2013). Utilizing Data Mining and Factor Analysis for Identifying Activity Base Costing Cost Drivers in Iranian Bank. Universal Journal of Accounting and Finance, 1(1), 1 - 8. DOI: 10.13189/ujaf.2013.010101.