Analysis of Activity Based Budgeting in ANZ Banking Group: Report

This report provides an analysis of activity-based budgeting within the ANZ Banking Group. The student's reflective journal examines the implementation of activity-based budgeting, contrasting it with traditional methods. The report highlights how activity-based budgeting aids in cost reduction, improves decision-making, and enhances resource allocation. It also explores the competitive landscape of the Australian banking sector and how activity-based budgeting enables better service and customer satisfaction. The report is based on information from the ANZ banking group and relevant references, including academic articles, to support the findings. It also discusses the benefits of this approach in planning and control, and how it aids in improving the organization's profitability.

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

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Reflective Journal
I have prepared a report which is on the activity based budgeting and the organization
that I have chosen is ANZ banking group. All the activities which I have gathered is
described in the report properly and all the information related to the ANZ banking group has
been provided completely. In the next part, I have stated the difference between the
traditional and activity-based budgeting, the improvement that has helped from the method in
planning and control is explained properly.
In the report, all the information that has been presents is being gathered by me which
is related to the activity based costing. With the help of various references that I have
gathered information about the ANZ banking group and how they have implemented the
activity-based budgeting in their organizational activities (Tuya 2017). The services which
are provided by the ANZ banking group are investment services and stock broking. The
approach which I have come across in costing is done upon the activity basis is in the
organization. Using this tool, as it is usually based on the current accounting period, all the
past data and budgets have no use of it. Using this method of budgeting, it does helps in
reduction of the expenses which is beneficial for the organization and furthermore it also
helps in cost reduction at the time of operation which helps in increasing the profitability of
ANZ banking group (Vieira 2018). One of the important feature that I have come across is
that it also helps in decision making in any organization and also helps in proper allocation of
resources. Though all the decision that are being taken by the management are carried out
after the discussion with the employees and the lower management people.
As there are several aspects in the banking industry, I personally think that ANZ
banking group have chosen activity based costing against the traditional budgeting (Wishart

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and Wardrop 2018). After having research on the Australian banking sector, it can be
observed that the level of competition is much higher, it is important for ANZ banking group
to maintain all the record based on the resources. The method of activity based budgeting is
much more transparent than the traditional budgeting and all the costs that are incurred are
being traceable by the management through this method (Vieira 2018). Thus, the ANZ
banking group also helps in improving the services that is being provided to the consumers
and it helps in raising the level of the customer satisfaction.
At the time of preparing the report, there were no issues faced by me as all data has
been found from the site of ANZ banking group and as it is one the leading organization there
were several number of articles which helped me in doing this report which is on the
implementation of activity budget costing. All the information that has been provided are
genuine as it has been taken from the annual report of the ANZ banking group.

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References
Tuya, T., 2017. Improving costing methodology based on commercial bank
restructuring. Management Review: An International Journal, 12(2), pp.24-42.
Vieira, R., 2018. ACTIVITY BASED COSTIN G IN THE FINANCIAL SECTOR: NEW
(AND POWERFUL?) ACCOUNTING DISCOURSE AND PRACTICE. Current Topics in
Management: Volume 13, Global Perspectives on Strategy, Behavior, and Performance,
p.199.
Vieira, R., 2018. ACTIVITY BASED COSTIN G IN THE FINANCIAL SECTOR: NEW
(AND POWERFUL?) ACCOUNTING DISCOURSE AND PRACTICE. Current Topics in
Management: Volume 13, Global Perspectives on Strategy, Behavior, and Performance,
p.199.
Wishart, D. and Wardrop, A., 2018. What can the Banking Royal Commission achieve:
Regulating for good corporate culture?. Alternative Law Journal, 43(2), pp.81-88.