Application Research On Activity-based Costing In M Anagement System Of LC Postal Savings Bank

With the increasingly competitive pressure existing both in domestic and foreign markets, how should domestic commercial banks change to compete with foreign and domestic competitors? Whether from theory or from practice, more and more people believe that the most fundamental one is to strengthen the internal management, and continue to reduce operating costs, optimize the capital structure and improve the core competitiveness. However, in the development process of C hina’s domestic commercial banks, everyone inclined to attach importance to business and market, believing that increasing market share is the core competitiveness, while ignoring the cost management, especially that in existing resources conditions, method of work flow, domestic commercial banks need to look for more of how to improve the service to reduce costs and increase customer satisfaction.Activity-based cost management is a new, advanced cost management philosophy, which is not only the needs of the future development of enterprise strategy, also the needs of enterprise traditional cost management idea’s transformation. At present, the complex environment of C hinese commercial banks and the tremendous cost pressures facing the urgent need to infuse new concept of activity-based cost management. In addition, the new idea of cost management has been applied in many foreign banks, and through its cost saving, strengthen internal management and other means to create better economic benefits, enhance the competitiveness of the banks. There is a small commercial bank has tried to introduce activity-based cost management concept to strengthen the internal management of the bank, and also achieved a certain effect. From the domestic and international situation, commercial banks in C hina, exploration, promotion, popularization of the idea of activity-based management is very necessary, this is an effective way to enhance competitiveness.In this paper, by means of a branch leads how the author explore the bank cost management ideas in the specific business of the bank, through a few specific business that everyone may be exposed to as a starting point, in-depth thinking of how to strengthen the internal management with activity-based cost management concept, so as to enhance customer satisfaction at the same time cost savings, improve the competitiveness of banks. In this paper, the main research work is as follows:Firstly, this paper introduces the background, the purpose and significance of topics and the innovation point of this article.In the second chapter, the author first introduces the present situation of cost management of commercial banks in C hina, then the author pointed out the common problems of cost management in C hinese commercial banks by a domestic behavior entrance, then the author puts forward the necessity and feasibility of our domestic commercial banks reference activity-based cost management concept.In the third chapter, the author introduces the development of this article refers to the cost management current s ituation and an assessment of its management in LC branch of postal savings bank, which noted that its cost problems and causes in management, resulting in the necessity and feasibility of applying activity-based cost management of the branch.Chapter IV, authors from activities, resources, processes using the concept of activity-based cost management, combined with loans and bank deposits, conduct research to improve cost management. Then, in the last part of this chapter, by setting some assumptions, using appropriate data combined with improvement recommendations of the first three parts of the section in this chapter for comprehensive case analysis, from the quantitative analysis of resources, activities, process, resulting in the impact of improvement cost of per business.Finally, the author summarizes the reference of activity-based cost management concept of Commercial Banks of our country, tells the advantages of domestic commercial banks reference activity-based cost management idea, also pointed out the shortcomings of this paper.