Management Accounting Report: Activity Based Budgeting at ANZ Bank

This report examines the implementation of activity-based budgeting at the ANZ Banking Group. It provides an overview of the bank's activities and how activity-based budgeting (ABB) is utilized, contrasting it with traditional budgeting methods. The report highlights the improvements gained by ANZ through ABB, including enhanced financial control, decision-making processes, and resource allocation. The analysis draws from various sources, including the bank's annual reports, and emphasizes how ABB supports the bank's competitive strategy in the Australian banking sector. The report also discusses how ABB contributes to improved customer services and overall revenue generation. The author faced no difficulties in collecting data for the report and the information provided is accurate and taken from the annual report of the company.

Running head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

1
MANAGEMENT ACCOUNTING
Reflective Journal
The organization that I have selected for this report is ANZ banking group, and the
use of activity based budgeting in that organization. The activities that I have gathered are
described entirely along with the information which is related to ANZ banking group is given
in this report precisely. The next part comprises of the difference between the traditional and
activity based budgeting and hence the improvement that the ANZ banking group got in
implementing of the budget is discussed here.
The information that I have gathered from various sources related to the activity based
budgeting is presented here. Most of the information that I have taken from the resources
related to the ANZ banking group are shown in the implementation of the activity based
budgeting which helped the banking industry (Lu et al. 2019). The ANZ banking group also
provides the services like investment services and stock broking. The budgeting procedure
which the ANZ banking group uses is related to the activity they performed. Upon the use of
this method there is no use of old records and thus, the presenting accounting method is more
useful which is used by ANZ banking group. By the implementation of this method of
budgeting, it also helps in controlling the budgeting of the ANZ banking group that will be
very helpful in the long run and will generate more revenue (Otchere and Chan 2003). One of
the most important objective that I have come across while preparing this report is that this
type of budgeting also helps in the decision making process in any organization related to
banking and also helps in allocation of resources (Heydari, Amiri and Jamour 2018). The
higher authority of the banking organization does involve the employees in the time of
decision making related to the organization.

2
MANAGEMENT ACCOUNTING
There are various aspects that I have seen in the banking industry, I firmly believe that
ANZ banking group has chosen activity based budgeting against the traditional budgeting.
After having done with the experimentation on the Australian banking sector, it is observed
that there is way more competition, so it is crucial for ANZ banking group to go on with the
data which is being provided (Shepherd 2017). Moreover, it helps in improvement with the
services provided by the ANZ banking group to the customers and I have observed that the
customers are happy with the happy with the services they are getting.
At the time of preparation of the report, I did not face any difficulties while taking
down the data and the resources, and since it is one of the biggest organizations it was much
easier to get the articles which has helped me in the conclusion of this report on how to imply
the activity budget budgeting. The given information which I have provided are accurate and
real as it is taken from the annual report.

3
MANAGEMENT ACCOUNTING
References
Heydari, A., Amiri, M. and Jamour, H., 2018. The Role of Internal Organizational Factors
in Implementing the Budgeting System Based on Performance: An Interpretative
Structural Modeling Approach (Case: Tehran Municipality). Journal of Urban Economics
and Management, 6(24), pp.117-133.
Lu, Y.F., Gan, C., Hu, B., Toh, M.Y. and Cohen, D.A., 2019. Bank efficiency in New
Zealand: a stochastic frontier approach. New Zealand Economic Papers, 53(2), pp.166-
183.
Otchere, I. and Chan, J., 2003. Intra-industry effects of bank privatization: A clinical
analysis of the privatization of the Commonwealth Bank of Australia. Journal of Banking
& Finance, 27(5), pp.949-975.
Shepherd, S., 2017. Mission based budgeting. Independence, 42(1), p.66.