| By introducing the conception of overall cost management and managerialaccounting method and also the development of information technology suchas ERP，cost management in modern western commercial banks has beendeveloped from the traditional ‘financial-accounting’ focused cost control toall-round and multi-level managerial accounting including advanced costmanagement, full participation, detailed accounting and evaluation.But so far,the Chinese-funded commercial bank has not established a systematic costmanagement system, achievement has been done only in certain aspects ofcost management accounting techniques and methods.This paper takes A bank, whose application of management accounting isearlier, as an example, introduces its current cost management, analysis theapplication of management accounting and the major elements needed forapplying managerial accounting into cost management field. We take theshortcomings exposed during its T branch’s performance as an example toindicate the existed disadvantage of current cost accounting management.The paper proposed to make suggestions on how to improve the existedcost management by focusing on how to realize risk-adjusted cost onmulti-perspectives as product, client, agency etc. so that to manage theexpense in advance and use expense properly and purposed, finally topromote business development, avoid waste, improve the level of costmanagement.Based on the analysis of A bank how to apply the managementaccounting cost accounting basis, further attempts to address the followingquestions:1. As there are difficulties in implementation of activity-based costing, we proposed to assort huge indirect costs into product costs, in order to get anaccurate and reasonable cost and product pricing.2. Through cost accounting, guiding and restricting business units makeexpense, prevent waste of resources caused by deviation on resourceallocation and business, to improve the level of cost management.3. A more reasonable cost accounting and benefit evaluation on products,customers, business units at multi-perspective.Based on the problems above, this paper puts forward to take indirectexpense into product cost in a more reasonable method. Calculate the singletransaction risk-adjusted marginal contribution to obtain products and the levelof customer cost and profit. Replace the existing economic value added indexby marginal contribution index to evaluate performance on cost and benefitinside each business unit. We hope there is reference significance to othercommercial banks.The article is divided into six main parts. The first part is the backgroundand significance; the second part, an overview on the development of costmanagement in commercial bank theoretically and practically; the third part,introduction on the development of cost management and revenue evaluationin A bank, and a detailed analysis on the advantages and more reasonableaspects of current cost management than traditional; the fourth part, based onanalysis of existing features and advanced management methods, point outthe existing disadvantages and aspects need to be refined that revealed fromdaily cost management in T branch; the fifth part, based on existing conditions,study on key elements for improvement, and design a detailed refined method;the sixth part, propose final conclusion of whole article. |
