Study On The Application Of Activity-based Costing In H Bank

With the entering of foreign banks, domestic commercial banks are facing more and more fiercecompetition in the industry. China’s state-owned commercial banks at present in terms of cost managementare still using the traditional cost management mode, there are many disadvantages. Using the cost ofoperation law, help to improve the bank’s internal cost management ability, but also contribute to thecustomer and product management and decision-making, is conducive to the establishment of theresponsibility accounting system, new provide a more rational basis for performance evaluation. Butbecause of the huge cost and the existence of China’s commercial banks internal reason, the method of costmanagement in our country has not been widely used. Therefore, this paper attempts to activity-basedcosting in the application of H bank, analysis of Activity-Based Costing in the possibility and necessity ofapplication of commercial banks in china.Firstly, studied the H bank’s existing cost management mode, find out the existing problems: dimcost concept; distribution method of indirect costs is unreasonable; lack of customer profitability analysis.And analyzes the reasons of these problems: cost accounting system to accurately without cost; costmanagement combined with the operation process analysis; cost management methods lack of managementaccounting methods.Then, the basic process of the design of ABC implementation in H bank and analyzes the specificaccounting: determine the operation and operation center, identify resources and collect resource cost,recognition and measurement of resource driver, confirmation and measurement of job motivation, job costaccounting concrete. The comparison and analysis of the activity-based costing and traditional costingaccounting results, shows the existing in the cost management accounting the advantages of activity-basedcosting, and the deficiency of the traditional cost method.Finally, the article put forward the proposal to the H bank to implement the activity-based costingmethod, one must be combined with the actual situation of H bank, suit one’s measures to local conditions;the two is to find out the orientation progressive, propulsion system; three is to promote the activity-basedcosting system frame construction; four is to improve the quality of employees; the five is to establish the corresponding operation cost database and accounting procedures; six is to make full use of activity-basedcosting information.