Font Size: a A A

Design Of Bank's Customer Profitability Accounting System Based On The Thought Of Activity-Based Costing

Posted on:2006-02-15Degree:MasterType:Thesis
Country:ChinaCandidate:X X LiFull Text:PDF
GTID:2166360155472977Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Distinctive Marketing strengths the importance of Customer Relationship Management (CRM) in business management. Customer Profitability Analysis (CPA) plays an important role in the Customer Relationship Management guided by the viewpoint of "Biggest the Enterprise's Value", reinforcing the customers'relationship management is to get larger enterprise value. Customer Profitability (Customer Performance) is just a very important part of Enterprise Value. Therefore, without the result of Customer profitability Analysis, it cannot be concluded whether Customer Relationship Management is good or not. As a complex and systematic work, Customer Profitability Analysis needs to calculate Customer Revenue and Customer Cost respectively, and then work out Customer Profitability. It is comparatively easy to determine Customer Revenue, but how to get the accurate calculation of Customer Cost is still in discussion. With the advance of technology, the proportion of the indirect costs in many industries is increasing. Especially in the service sectors such as the bank industry, the accounting based on the product is not as significant as the accounting based on the customers, and traditional cost accounting can not meet the needs of modern management any more. This paper firstly discusses the significance of Customer Relationship Management (CRM) in term of carrying out Distinctive Marketing and promoting profit. Then it makes a summary on the current situation of CRM and CPA, the pattern of cost accounting and the existing problems of the banks in China. In addition, it introduces the practices of foreign commercial banks'CRM and the gap between the practices in domestic and abroad. The first part of the paper makes a review on the reason and basis of Activity-based Costing, several basic concepts, and the calculating principles. The possibility and necessity of ABC applied to CPA are also discussed. The second part in this paper is a case analysis of a CSC commercial bank. According to the application of ABC in the accounting system of CPA in this bank, it sets up the process of customer profitability accounting, the evaluation of the index etc.on how to appraise one of the bank's customers whether he/she is profitable or not. The study in this paper establishes the accounting system of CPA on the basis of ABC, including the revenue and cost analysis in customer profitability accounting, the analysis of CPA, the index system, the analysis of the structure and trend of customer value, profitability evaluation index, risk evaluation index.
Keywords/Search Tags:Customer Relationship Management (CRM), Customer Profitability Analysis (CPA), Activity-based Costing (ABC), Customer Cost accounting, case study
PDF Full Text Request
Related items