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Accurate cost information is the basis of management decision-making. Researches on the accuracy of ABC have to remain at logical analysis limited to the difficulties in the actual data acquisition and the lack of measurement methods. On the premise of available cost data of HZ company, this paper suggests a regression model which can test the accuracy of costing methods, and presents the testing procedures and methods. Then, this paper conducts a comparison between the traditional costing and ABC by regression analysis, and comes to the conclusion that ABC is superior in accuracy. Keywords-Accuracy; Regression analysis; Test model; Empirical evidence.

An Empirical Proof for the High Accuracy of ABC