The Research On Application Of ABC In A Bank Z Branch

From December11,2006," Foreign Bank Regulations People’s Republic of China " andthe " People’s Republic of China Foreign Banks Regulations Implementing Rules," theofficial implementation of the full opening of China’s banking industry began, the number offoreign banking institutions in China and the corresponding asset size increased year by year.Foreign banks in terms of asset quality, capital size, and products and services administeredby way of innovation, compared with domestic commercial banks have a strongercompetitive advantage, and in the liberalization of financial sector development, informationtechnology, and the general trend of internationalization, foreign banks into the impact ofChina’s commercial banks and the competition will not be underestimated. And for a longtime, China’s banking cost management tools lack the presence of management accounting,cost accounting methods extensive problems, and therefore can not efficiently provideaccurate information for decision making, poor cost management efficiency. So, try toimprove the overall level of commercial banks’ cost of management has become the face ofincreasingly fierce competition in the industry, China’s commercial banks and improvedecision-makers think an urgent problem.At present, China’s commercial banks are mostly used in traditional cost managementmodel, its simple process costing, accounting processes lag, resulting in inaccurate costallocation, measurement results of product cost distortion. Costing as a science, advancedcost accounting and management methods to help improve commercial banks’ internal costmanagement capabilities, help develop more effective management of the bank customer andproduct decisions. Meanwhile, in order to build a new accounting system to lay thefoundation, but also provide the basis for more effective performance appraisal system.Operating cost management approach in many Western banks have been well implemented,such as the British bank HSBC, Citibank, etc., in China’s Hong Kong ’s banking sector hasalso been a certain development, but in China mainland commercial banks in no case relatedto the successful implementation of activity-based costing.This article from the administrativecosts of the status quo of China’s commercial banks A starting and operating the most basic Abank accounting unit-Z branch of a case study on the application of China’s commercialbanks Costing a useful application to explore, trying to introduce to China’s commercial banks provide relevant reference costing.Based on the A branch of Bank Z ’s existing cost management study, first identify thedefect its current cost management methods and models, and analyzes the necessity andfeasibility of the introduction of activity-based costing, and then, on the A branch of Bank Zcosting conducted using a case study of the design of the operating cost method implementedin the Z branch of process operating costs in determining the object, based on the specificaccounting conducted to clarify the activity-based costing Z branch conducted in sub-sector,principles of product costing and implementation of the effects of sub-branches and keypoints of the correlation analysis, in order to solve some problems for the Z branch ofbusiness decisions on. This paper aims to study the case of China’s commercial banks of theintroduction of activity-based costing, for China’s banking industry in the future be able touse a more scientific activity-based costing, cost management system has some practicalsignificance.