Improvement Research On Cost Management Of Rural Commercial Bank N Based On Activities-Based Cost Method

All along,our commercial banks have not paid too much attention to cost management,and the cost-to-income ratio has always been high,rising to 28.7% in 2018,and even 35% in rural commercial banks,which means that under the current macro-economic environment,commercial banks are facing the dilemma of declining income and compressed profit space with the continuous deepening of interest rate liberalization and the complete opening up of the financial market in our country.As a local small and medium-sized rural financial institution,Costs of Rural Commercial Bank N remain high,with a cost-to-income ratio of 42%.In the case of very little intermediate business and difficulties in business transformation,reinforce the cost management has become one of the effective ways for Rural Commercial Bank N to improve the operation efficiencyThe main purpose of this paper is to improve the cost management of Rural Commercial Bank N,through thorough analysis on the current cost management mode,this paper analyzes the cost-managing concept?the cost sharing mechanism and the budget management.It points out that the current cost management system is not scientific and refined enough,the cost sharing mechanism is unreasonable,the data is not accurate enough,the budget management is too simple and does not have the guidance on business operations.According to these problems,this paper chooses activity-based costing method to improve the cost management of Rural Commercial Bank N,combining the advantages of activity-based costing method in cost management and the Rural Commercial Bank N's own demand and suitability of activity-based costing method.After the simulating implementation of activity-based costing method using the data of Rural Commercial Bank N,according to the accounting results after the implementation of the activity-based costing method,this paper analyzes whether activity-based costing method can bring better effect to the cost management of Rural Commercial Bank N.Firstly,this paper introduces the theories of bank cost management and activity-based costing method as the theoretical basis of the following analysis.Secondly,it introduces our research object——Rural Commercial Bank N,respectively from the introduction of operating condition?cost structure and current management situation.After a thorough analysis of the current cost management system of Rural Commercial Bank N,we can conclude that the current cost management of Rural Commercial Bank N has problems of backward management concept,imperfect in cost sharing mechanism and unscientific in budget management.Finally,through the implementation of activity-based costing in Rural Commercial Bank N and combine with the relevant data to calculate,we can conclude that activity-based costing method can improve the cost management effect of Rural Commercial Bank N,and the experience of this research is summarized to provide some inspiration for the cost management optimization of small and medium-sized commercial banks in China.