Discussion About Time-driven Activity-based Costing Application In China Merchants Bank Nanchang Branch

Since 2009,our country has fully opened the financial market.The market competitive mechanism has been continuously growing.Taking advantage of its capital and management,foreign banks quickly enter the Chinese market.With the advantage of low cost and high efficiency,the innovative financial institutions that relying on internet technology,such as Ali financial company,are spring up.In the same time,other state-owned banks and commercial banks also develop rapidly.That means,in our country,commercial banks are facing fierce competition in industry.And in recent years,the profits of banks appear downward trend.To enhance the competitiveness of commercial Banks,how to efficiency control the cost and quality in bank business process will become the important factor.But banking business refers to numerous fields,has multiply and growing business category.And the business changed from the past general service to the Individuation Service by gradually segmented.All these increased the difficulty of cost accounting.How to find a suitable method for accurate cost allocation,for calculate the cost and profit of every business and every service is imperative.Traditional cost accounting method allocate overhead inaccurately.Lead to cost information lacks fidelity.Since the traditional cost accounting method can't provide accurate information for cost management.For that,Activity Based Costing used to be high respected to solve cost allocation problems well.But in the application,ABC appears various problems.Such as data storage and processing operation cost is high,subjective estimates hard to be validated,the changing environment can't be adapted.Result in that ABC is difficult to be widely adopted.So this article transfers research perspectives to the new Time Driven Activity Based Costing.This method retains the advantage of ABC,meanwhile avoid the disadvantage of difficult to implement.TDABC use time as driving factor,shows the nature of value-generative,save time and cost,and reflect the spare capacity to avail bank management decisions.This article based on the related discipline theory knowledge,combined with the established research purposes.Comprehensive using method of normative study,method of comparative analysis,combinative method of theory analysis and case analysis,combinative method of qualitative analysis and quantitative analysis.In the theoretical analysis part,analyze a large number of research literatures at home and abroad,through that to summarize the method and parameter needed when applying TDABC.In the case analysis part,China Merchants Bank Nanchang branch chosen to be the case object of applying TDABC.Firstly,this article analyze the necessity and feasibility of applying TDABC in China Merchants Bank Nanchang branch.Then from these two aspects,projecting data platform and planning specific accounting process,show how to apply the TDABC.Finally in the retail department of Qingshan lake branch,allocate the real cost according to designed process.Meanwhile compared the result with the result of traditional methodThrough the case analysis of applying TDABC in Nanchang branch,these mainly problems in application process are summarized:(1)Equation updated frequently.(2)Difficult to implement in whole bank.(3)Easy to cause the employee's resistance.(4)CPA is not approved.Since put forward the following specific countermeasures:(1)Save the update operation by ERP system.(2)Local test,step by step.(3)Establish matched incentive system to cross initial time.(4)Concur with traditional accounting,assist cost management.Full text is divided into five parts.The first part is the introduction.It mainly introduced the research background and significance,research ideas and methods,related literatures at home and abroad,and the basic framework.The second part is the introduction to the theory of TDABC,is a theory part.Mainly include the concept and principle of TDABC,the basic parameter needed when applying TDABC,and the characteristic of TDABC compared with traditional ABC.The third part is the introduction to Merchants Bank,Nanchang branch.Analyze the necessity and feasibility of applying TDABC.The fourth part is the application framework of TDABC against the background of Nanchang branch.Include the principle and objective of building framework,project of data platform,cost accounting process,and specific department example.Not only is the case analysis part,also is the focus of the full text.The fifth part is the problems encountered in application case research,the countermeasures,and the other key line in the application.