Activity Based Costing in Financial Institutions: How to Support Value-Based Management and Manage Your Resources Effectively [Hardcover]

Julie. Mabberley (Author)

Book Description

ISBN-10: 0273637533 | ISBN-13: 978-0273637530 | Publication Date: September 15, 1998 | Edition: 2

Activity Based Costing offers a practical approach to implementing the ABC techniques. The goal of ABC is to identify the factors that drive expenditure and thus manage these costs more effectively. This book shows how to address the key issues that may arise in such developments, identify the activities which consume costs, develop strategic planning and management of resources, undertake cost reduction exercises and develop ABC operationally to include budgeting and performance management.

Editorial Reviews

From the Back Cover

Activity-based Costing in Financial Institutions examines the increased pressures on profitability faced by financial institutions and provides techniques and tools that can bring about significant changes in management behavior by focusing attention on expenditure patterns and operational processes.

This book, now in its second edition, introduces strategic value enhancements and considers how Activity-based techniques can support this. It includes:

• a review of the different uses of Activity-based Costing within financial institutions, including the problems most frequently encountered
• a focus on strategic value management which identifies the principle uses of Costing and relates them to different types of financial institution
• the mechanics of calculating Activity-based costs
• an approach to implementing an Activity-based information system through 24 basic steps grouped into 6 broad phases

With case-studies, tables and chapter summaries running throughout, Activity-based Costing in Financial Institutions provides the means to understanding the behavior of all costs within an organization and explains how these costs can be managed more effectively.

Management at all levels in financial institutions now realizes the importance of controlling its costs to improve overall profitability.

Activity-based Costing is a valuable tool for identifying the products and activities which consume costs.

This practical guide explains Activity-based Costing techniques and how they can be used in practice to calculate costs more effectively. It discusses how the techniques can be used to assist in pricing and managing resources more effectively.

This will enable financial institutions to make meaningful decisions about their activities and products in order to achieve their goal of maximizing profitability.

About the Author

Julie Mabberley is a management consultant with the PricewaterhouseCoopers Global Financial Services Practice and specializes in the development and use of management information in the financial sector. Since 1986 she has worked with banks and insurance companies in Australia, Canada, South America, USA, Middle East and Europe and is a world authority in profitability/performance measurement in financial institutions. She is also a regular lecturer on cost management and profit improvement.

She has written another book, Managing the Future in Financial Institutions, which discusses the profound changes affecting the financial services industry, the need for better management information to support the decision making necessary within this environment, and presents tools to assist in the development of the information.

Prior to joining PricewaterhouseCoopers, Julie worked as an accountant for Midland Bank, an accountant, systems analyst and O&M analyst for Bank of America and an O&M analyst at Nestle.

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Product Details

• Hardcover: 256 pages
• Publisher: Financial Times Prentice Hall; 2 edition (September 15, 1998)
• Language: English
• ISBN-10: 0273637533
• ISBN-13: 978-0273637530
• Product Dimensions: 9.1 x 6.1 x 1.2 inches
• Shipping Weight: 1.1 pounds
• Average Customer Review: 3.5 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #2,099,995 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

10 of 11 people found the following review helpful:

2.0 out of 5 stars The ABC challenge in financial institutions still remains!!!, July 6, 1999

By A Customer

This review is from: Activity Based Costing in Financial Institutions: How to Support Value-Based Management and Manage Your Resources Effectively (Hardcover)

The Activity Based Costing Methodology showed in this book, by itself, doesn't provide full answers to the challenges Financial Institutions have been facing.

Of course, some simple and commom questions are addressed, adapted from manufacturing knowledge, but complex ones aren't.

For example, the question "how can I compute IT costs to products, services, customers, distribution chanells?" can be answered in a correct way.

As a "growing high tech consumer", financial services industry needs valuable answers to these questions.

Since 1994, we've performing projects related to implementation of Advanced Cost and Budget Systems using ABC Costing. Recently, we've perfomed projects in 2 global Banks (top 10, assets), where we can focus in answer in a correct way these complex questions.

However, I think the book is usefull for starting discussion about the theme in the financial institutions environment.

Thank you.

Christiano Mendonca, Brasil

1 of 11 people found the following review helpful:

5.0 out of 5 stars I enjoyed writing it, September 15, 1999

By 

Julie Mabberley (London) - See all my reviews

This review is from: Activity Based Costing in Financial Institutions: How to Support Value-Based Management and Manage Your Resources Effectively (Hardcover)

Activity-Based Costing and management information in financial institutions is an area I have been interested in for many years. It is difficult in one book to provide answers to every eventuality, but I have enjoyed the opportunity to provide some insights from my (and my colleagues) that may suggest ideas to others facing similar problems. I have included a basic methodology and guidance that we have found useful, but as with all MIS projects these tools do need to be tailored for each individual organisation. I hope you find it useful and I look forward to reading your reviews in the future.