Bank Cost Accounting - 4758 Words

elevance of Managerial Concepts in the Banking Industry by Zabihollah Rezaee Ph.D., CPA, CMA, INTRODUCTION In the past, bank accountants paid little or no attention to the use of managerial accounting concepts in the banking industry. Viewing managerial accounting from the perspective of the banking industry provides a unique opportunity to explore the development of the internal reporting structure. While the use of internal cost and profitabiHty reports is widespread in merchandising, manufacturing, and other service industries, banks have historically focused only on overall profitability. The reason is simple. In the past, interest rates, branch locations, and service offerings were heavily regulated by the government; banks had little†¦show more content†¦Roosevelt Joseph G. and Johnson, David H. ttl. Managing Prontability Information; How to Develop a Framework for Success, Bankers Monthly Magazine, f^pnl 1986, pp. 30-31. 4. Faletti, Peter F., Are Your Branches Profitable? Do You Really Know? Savings Institutions, October 1986, pp. 88-95. 5. Chisholm, R.W., CA. and Duncan, G.K., A Product Profitability System for Improved Decision Making, The World of Banking, January-February 1985, pp. 27-33. 6. Faletti, loc. cit., p. 90. 4 JOURNAL OF PERFORMANCE MANAGEMENT i ferent from manufacturers and merchandisers because they have no inventory of goods (other than supplies). Thus costs are charged to responsihility centers for performance evaluation. In a hank, for example, costs are charged to operations centers such as lending departments. Allocations are made from operational centers and non-revenue recording responsihility centers to revenue recording centers or profit centers. Allocations to profit centers include the expenses of operational support areas, administrative overhead areas, and charges for the use of funds that were raised hy other areas of the hank. Profit center reporting provides a foundation for responsihility-based hudgeting and, therefore, establishes a basis for measuringShow MoreRelatedHorngren Cost Accounting 14e Solution Test Bank Essay854 Words   |  4 PagesFull 23 chapters Horngren Cost Accounting 14e Solution Manual + Test Bank at https://sellfy.com/p/vB9y Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 12 Pricing Decisions and Cost Management Objective 12.1 1) Companies should only produce and sell units as long as: A) there is customer demand for the product B) the competition allows it C) the revenue from an additional unit exceeds the cost of producing it D) there is a generous supply of low-cost direct materials Answer:Read MoreSwot Analysis : Abc Costing System1605 Words   |  7 Pagesthe company reduce the cost from direct labour and material cost, but the indirect or overhead cost become significant high. Therefore, price decisions on each product become essential. 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Furthermore, analyses of measurement data on creditors or stockholders are also provided by an accountant. This essay will seek to prove that through principles of financial accounting, cost accounting and cost management, accountants can control the cost of businessRead More244142550 Principles Of Cost Accounting7232 Words   |  29 PagesPrinciples of Cost Accounting Vanderbeck 16th Edition Test Bank Click here to download the test bank INSTANTLY!!! http://www.solutionsmanualtestbank.com/products/2013/04/29/principles-of-costaccounting-vanderbeck-16th-edition-test-bank Principles of Cost Accounting Vanderbeck 16th Edition Test Bank Principles of Cost Accounting Vanderbeck 16th Edition Test Bank ***THIS IS NOT THE ACTUAL TEXTBOOK. YOU ARE PURCHASING the Test Bank in e-version of the following textbook*** Name: Principles of Cost AccountingRead MoreRole of Cost Accounting and Ethical Consideration1090 Words   |  5 PagesRole of Cost Accounting and Ethical Consideration Role of Cost Accounting and Ethical Consideration Introduction Cost accounting is used to help management understand how much it cost to run a business. Understanding the role of cost accounting is important when one is trying to put together a team of managers to help run the company. The CEO of a merchandising organization needs to hire a CFO to run the accounting system, but the CEO has little understanding of cost accounting. The CEORead MoreWhat Is Cost Management Accounting Reporting Systems1454 Words   |  6 PagesWhat is Cost Management Accounting Reporting Systems? 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