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.
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.
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