Research On Application Of Time Driven Activity-Based Costing In ADBC

With the acceleration of global financial market integration and the development ofcommunication technology and computer network, banks’ business have become morecomplex, and banking managers are aware of the great importance of cost information.Time-driven activity-based costing is an extension and development from costaccounting method, which provides accurate and detailed cost information of allbanking business, adapts to banking individual management and impels banks to launchprofitability analysis and budget management. Therefore, it is significant to study theapplication of time drive of Activity-Based Costing in banking.This paper introduces the fundamental principles of activity-based cost accounting,analyses the feasibility of ADBC, as a policy bank, implementing the above mentionedcosting as well as the significance of introducing such kind of method. It also points outthe possible problems by combining with the influence of traditional cost accountingmethod. Through the example of financial department of a sub-branch, the paperanalyses the relevant problems which will arise when introducing the temporal driveoperation cost accounting, in order to operate it in daily accounting, so as to assist thebanking supervisors in realizing the cost management.