Analysis Of Application In Tianyuanbranch By ABC

As bank developed the reform, CICB Tianyuan branch have to face the huge competitive pressure that they never meet before. How to minimum the disadvantageous influences of the costing in order to reduce the error of costing management is important. Based on full-scale analysis on challenges and chances that CICB W branch will encounter, how to apply ABC in Tianyuan branch is key, and point of view that we can utilize ABC to improve the present cost management situation of CICB Tianyuan branch is also raised in this paper.ABC comes out as a novel cost-management regulation. Its success greatly due to have overcome computing defects of the traditional overhead expenses and have reformed product Cost-computing method which greatly be convenient for cost-management. The application of ABC provides relatively accurate cost information for the banking, through tracking and analyzing the activities, which are Relevant to the bank products in order to remove non-value-added activities and improve value-added ones. ABC make loss and waste reduce to the lowest limit, increase scientificalness and usefulness of the decision, and strengthen the market competition ability of the bank. .There are two steps in costing. First, identify activity, main activity and activity center, set up activity-based cost pool according to the same characteristically activity, and distribute indirect cost to activity-based cost pool on the basis of resource driver; Second distribute the cost in activity-based cost pool to final product on the basis of activity driver. The basis standard of cost distribution is cost driver, and the selection of cost driver is the key in costing.Through this method derived from the manufacturing, It also brings its immense advantages to the bank management. Through introducing ABC companied with ABC successful case in foreign developed bank, this article will narrate how to carry ABC into execution in Tianyuan banks management, in furthermore, the article will discuss the probability of introducing ABC into CICB Tianyuan branch.and the implementing problems based on the current status of CICB Tianyuan branch. .The article divided into six parts:Advantageous conditions on which ABC is implemented, in this paper, preparative work, methods and steps during the construction of ABC system, and ABC analysis based on ABC accounting are discussed, and how to define the activities and clarify the activity drivers and resources drivers are analyzed emphatically. There are two rules when activities are defined in Tianyuan branch. Fist, definition must be clear. Second, degree of subdividing activities must be controlled properly. Clarified drivers should reflect the relationship among resources, a activities and products. Resources drivers and activity drivers should base on data, which means these two kinds of drivers must be calculable. ABC analysis includes analyzing of value chains, delving of cost drivers and measuring of achievements and.so on. Costs are reduced by cutting down needless activities and finding out the divers that lead to waste.In this paper, we also try to analyze the products cost in Tianyuan branch by ABC, the suggestions about improving activity flows are put forward. In the last of this paper, several suggestions about solving the problems those appear during the implementing of ABC...