The Application Of Activity-based Costing In Agent Intermediate Business Of J Commercial Bank

The 2016 annual report shows that the growth of net profit of the five major state-owned commercial banks has slowed down,and the Bank of China is the first time that net profit has grown negatively since its listing.At the same time,the total number of employees has also declined.This phenomenon has caused widespread public concern.In the face of increasingly fierce domestic and international competition and the pressure of the current economic downturn,major banks are committed to the development and expansion of intermediary business.In recent years,the increase in net profit of banks tends to be flat,while the income from intermediary services has continued to grow.Intermediate businesses have become new profit growth points for banks compared to traditional deposit and loan businesses,which has caused the cost of intermediate businesses to attract widespread attention.The bank's intermediate business costs include direct costs and indirect costs.The allocation of indirect costs has always been a cost-accounting issue for banks.For the greater proportion of indirect costs in the banking intermediary business,the introduction of the ABC is necessary.It is the oldest,most densely-populated and largest-scale commercial bank in the region.Agency business is the main core of J Bank's intermediary business and relies on its own intermediary advantages to earn a large amount of revenue for the bank.Therefore,this paper uses the J bank agent intermediary business as an example to propose an application of the ABC based on process and job analysis.The calculation and distribution of the indirect costs of bank intermediary business.Based on the analysis of the current situation of J bank intermediary business cost management,this paper finds that the banks are weak in cost management awareness,intermediate business cost accounting,cost information analysis lagging and lack of a powerful cost management system.It is proposed that the application of activity-based costing(ABC)to the indirect cost of intermediary business in the J bank.Line allocation and calculation.Based on the general steps of enterprise application activity based costing and combining the actual situation of the bank,thispaper designs a specific cost accounting scheme,and implements the bank agent in order to divide the resource cost bank,confirm the business process and work,assign the resource cost to the operation and assign the operating cost to the adult object.The scientific distribution of the indirect cost of the intermediate business.Finally,this paper forecasts the effect of ABC in J bank,and puts forward the safeguards to implement ABC.The research results show that although there are few studies on the application of activity-based costing to the financial service industry in China,it is also applicable to the activity based costing(ABC)because of the large proportion of the indirect costs in the middle business of the bank.At the same time,activity-based costing can provide new ideas for decision-makers from the perspective of management,help commercial banks to carry out scientific cost management,and effectively support bank products and market positioning decisions.Although there are no examples of successful application of Activity-Based Costing in domestic commercial banks at present,it can be seen from the applicability and superiority of activity-based costing(ABC)that the introduction of Activity-Based Costing in the middle business cost management of commercial banks is the trend of future development.