Abstract:

There are too many factors effecting product cost.The determination of primary factor is critical to the economic profitability of the enterprise.In this paper,the grey association analysis method is applied to get the primary factor of influencing products cost by establishing a mathematical model to calculate the comprehensive correlative degree of each contributing factor to product cost.An example is provided to illustrate procedures of the method.The result shows that gray correlative analysis method has lower requirements for sample size and sample regularity without inconsistency between quantitative and qualitative results.The method is also quick and simple in calculation.

Key words: gray correlative analysis;products , cost;primary , factor;compositive , correlative , degree