The Study Of Cost Recognizance System For State Owne Commercial Banks

Resources allocation is a critical issue of economics study and alsothe critical issue which needs solving in the operational and managerialtheory and practice for State Owne Commercial Banks (SoCB). Sincetransformed from plan economy, the structure and contra-harmony ofresources allocation in the SoCB are the fundamental factors why theSoCB facing so much problems as poor financial performances and badloan. To improve and raise the capital operational quality and benefits ofthe SoCB, we must proceed with the aspects of system, means etc toreform the resources allocation.By exercising cost recognizance system, bigger operational benefitscan be obtained with small resources input, this is in line with theoptimized principle and operational target of resources allocation of ourcommercial banks. This can help help to resource optimized allocation forthe SoCB.This thesis start from the critical issue of resources allocation.Since many years ,In SoCB, only by invest of adding production elementto realize the bigger operational benefits .So SoCB facing manyproblem ,as lacking for cost consciousness and getting bigger benefitswith unreasoning .thid is why :irrational management and operationstructure ,manpower ,wasting excessly. The existing of cost managerialsystem is restricted the developing of SoCB.First, the definition of the cost recognizance system is analyzed, onthe basis of related research achievements, it is put forward that the costrecognizance system or cost and value recognizance system refers to theargument of benefits feasibility from the angle of cost control on the basisof the law of input and output before bringing out the important itemsinvolved in the input of human, money, and materials. The cost andcreated value in the operational and managerial activities of thepolicy-maker(s) are compared and recognized to decide whether it isfeasible. Thus the argument system of the feasibility is argument so as tonormalize the act of resource allocation and implement the optimization ofresource allocation and economic benefits for SoCB. Thus it is necessarythat the cost recognizance system be exercised for our SoCB and it isobjective requirement of profit maximization; it is a rational choice toopen target market and optimize resources allocation; it is beneficial toestablishing scientific decision-making mechanism and normalizingfinancial resource distributive act. Basic work and method of exercising cost recognizance system inSoCB are argued in detail next part. Basic works mainly includes:primitive record statistics of cost recognizance; establishment of rules andregulations and organizing system; exercising responsibility cost andstandard cost control etc. Afterwards, major methods of cost recognizancesystem are introduced: principal and interest analysis method, valueengineering analysis method, input and output analysis method,opportunity cost analysis method, cash flow analysis method.The next part ,the thesis discussed the condition of cost recognizancesystem including outside and inside aspect. Cost features of SoCB arestudied first. It is the economic resources value consumed duringmanagement and operation; it is economic resources consumption whichshould be supplemented by operational income; it is resources valuealready consumed right now. Second, by study of cost features ofcommercial banks, problems need solving about establishing the costrecognizance system are analyzed: a: resistance analysis of optimizingnetwork layout of the cost recognizance system; b: recognition analysis oftotal cost management reform constrained by external environment; c:promoting analysis of the cost recognizance system by beefing up thetraining of employees and attaching great importance to talents (brains)cultivation; d: confirmation analysis of information database and methodsconcerning the cost recognizance system. Necessary preparation is madefor further discussion and exposition by putting forward and analyzing theproblems. In part 3, five principles which need adhering to about the costrecognizance system are put forward: i.e. adherence to the exercising ofthe cost recognizance system which is combined with operational target;adherence to the principle of overall cost recognizance system which iscombined with key cost recognizance system; adherence to the principlesof integrated efficiency which is combined with social benefits; adherenceto the principle of stability combined with conformability; adherence tothe principle of normalization of the cost recognizance system. Thedirection and method of the cost recognizance system are clearly definedby putting forward the five principles of the cost recognizance system.The method of cost recognizance system is expositioned by usingoverall cost management in next part. First, a set of scientific bankaccounting method should be established. The feasibility of project isargued by recognizance of opportunity cost and marginal cost; second,based on the recognizance method of overall cost, for example, thenetwork of the commercial banks should be optimized and integrated,human resources should be internally integrated, and human cost structureetc should be optimized; third, by cost recognizance system, the businessresources of SoCB should be integrated, mainly adjust operational pattern,adjust assets and liabilities structure etc; finally, the application ofconcentrated purchase in cost recognizance system is expositioned Finally, problems worthy of note of cost recognizance system areargued besides continuous perfection of cost recognizance system fromaspects of contents and methods: a: carrying out the cost recognizancesystem cannot be limited to the satisfaction of using the establishedmethods and principles to accomplish predetermined tasks. If overallconditions come to maturity, extension may be added from the establishedfield to break through cost saving and provide support to intensify thecompetitive power of the SoCB; b: gradually transform to modernmarket-oriented cost management from accounting-oriented costmanagement. By the whole content, the thesis analyzed exercising costrecognizance system, and discussed the effect for resource allocation. Itpoint out: as a method for resource allocation , cost recognizance system...