Selection of cost drivers using integrated decision model

In today' s business world, it is very important for businesses to have accurate and precise, timely information. In today's market conditions, with increasingly competitive conditions, enterprises face serious problems about quality, cost and duration of response. For this reason, it is vital to be able to be effective and competitive to reach the knowledge of the cost of the goods or services produced in a timely and accurate manner. Businesses are looking for solutions to these problems using costing systems that use cost driver to allocate the costs to products or services. This study proposes an integrated cost driver selection model that uses six mutually supportive selection criteria that enable companies using cost systems that allocate general overhead costs to products using cost driver to be able to select the correct and appropriate cost driver during the cost driver selection process. In this model, Analytic Hierarchy Process, TOPSIS and MOORA are used integrated. Analytical Hierarchy Process, are used to determined the weight which is necessary for decision matrix in TOPSIS and MOORA methods and then TOPSIS and MOORA decision matricx were used to select the most appropriate cost driver to allocate general overhead costs. The criteria used in this study are the criteria proposed in the literature on cost driver selection. In the model being a succesfull performance measurement tools criteria was selected as the most dominant criteria, while the lowest one is the future cost of the cost driver. The cutting time required for the production of the product from the alternatives determined as a result of the implementation of the integrated cost driver selection model has been identified as the most appropriate alternative for the distribution of the general overhead costs.