Activity Based Costing System
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Added on 2021-05-31
Activity Based Costing System
Added on 2021-05-31
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Activity based costing 1ACTIVITY BASED COSTINGBy (Student’s Name)Professor’s NameCollegeCourseDate
Activity based costing 2Table of ContentsExecutive summary.....................................................................................................................................3Introduction.................................................................................................................................................4Explanation of Activity based costing and its features................................................................................5How Activity based costing system with the new strategies and goals of the Bank of Queensland............6The mission and objectives of the Bank of Queensland..........................................................................6Corporate strategy of the Bank of Queensland.......................................................................................7Description on how activity based costing helps the BOQ in achieving its strategies..............................8Recommendations for implementation of ABC (Activity based costing) model for MOQ.........................10The alternative management tool appropriate for Bank of Queensland...................................................10Conclusion.................................................................................................................................................11References.................................................................................................................................................12
Activity based costing 3Executive summaryThis paper discusses the application of the ABC system in Bank of Queensland. It does soby describing how the Bank uses Activity-based costing to improve both the full costing systemsand partial costs. The paper starts with a brief explanation of the model. It then looks at thefeatures of the ABC system. Some of the benefits of this approach are that it addresses theproblems associated with the product mix, it helps the organization to save costs, and it alsoimproves the cost structure as well as the services and products that the firms provide to itscustomers. The model can also help in reducing the complications of processes within theorganization (Siebold and Berger 2018). The implementation of this model into the organizationrequires the management to fully support all the staff by the provision of the necessaryresources. Training of all the employees is also essential since it enables the entire team to gainthe required skills and knowledge on the use of the Activity-based costing system (Ning, ZhangBing and Baležentis 2018).
Activity based costing 4IntroductionBank of Queensland is challenged with progressively more complex, dynamic anddiverse market environment. The demand for the bank services and products has led the Bankof Queensland to establish new, non-traditional services and products and test new andinnovative methods with the intention of attracting funds from their customers. Besides, Bankof Queensland has to change quickly and invent new technologies to enable it to be at the samelevel with the increased moving, electronic economy (Du, Worthington and Zelenyuk 2018).When any business changes the traditional ways of operation and starts running into anothernew, diverse environment, then the company has to change the simple tools it initially uses tomanage its activities and measure its daily performance to do away with any errors associatedwith the traditional ways of handling their operations. The bank also has to understand andidentify its profit areas, which is more crucial to any business to grow and be ahead of itscompetitors. This will enable the bank to know the sources of their profits and services with thehigh demand (Meng, Cavoli and Deng 2018). The bank will then use all these information tomake decisions which will increase the performance of the institution in the marketplace. Oneof the significant problems that the Bank of Queensland is facing is coming up with a cost-effective and accurate method of managing and measuring its portfolio of customers andproducts (Almarzoqi, Mansour and Krichene 2018). The bank also needs accurately apportionits costs to the services and products it sells as well as to the numerous customers that buytheir products in the market. The most appropriate resources for solving these challenges atBank of Queensland are the use of Activity-based costing (ABC) system. The paper starts bydescribing the model and its features. It also discusses how the Bank of Queensland can use the
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