The Application Study Of ABCM In Our Commercial Bank

Facing the severe competitions in the financial field, the commercial banks of our country realize the principal task in the field of the operation and management is the product cost management. In order to improve the level of product cost management of our commercial banks, and shorten the difference between our country and advanced countries in the field of product cost management, we should use foreign experiences of advanced product cost management for reference with combining actualities of the commercial banks of our country. And it is the studying and composing intention of this thesis.Part one discusses the necessity and significance of the product cost management and control in the commercial banks. In order to conclude the ways for the improvement of the product cost management in the commercial banks of our country, the author decides to use Activity-Based Cost Management (ABCM), CVP, Value-chain theory and so on to study in this thesis.Part two introduces the products and costs of the bank simply. This part summarizes the characteristic and the category of products and the product costs of the bank.Part three studies and explores the acutalities, problems and cause of the problems of the product cost management in the commercial banks of our country. And it analyzes the necessity of the product cost management in the commercial banks of our country.Part four and part five are the main parts of this thesis. Part four firstly discusses the limitations of the product cost allocation under the conventional cost system and introduces the model of Activity-Based Cost (ABC).By analyzing the merits of Activity-Based Cost (ABC), the author points out the necessity of the use of Activity-Based Cost (ABC) theory in the field of the product cost allocation. Subsequently, part four introduces the process of performing of ABC in our commercial bank, including the ways and steps of the product costing by using ABC.Part five firstly discusses the principles in the management and control of the product cost in the commerical banks. Subsequently, part five introduces that how to use Cost-Volume-Profit(CVP) theory to calculate the costs of the products. And then by using Activity-Based Cost Management (ABCM), standard cost theory and Value-chain theory, the author brings forward the ways of management and control of activities to determine an accurate product cost, improve business processed and eliminate waste.