Published by:
Deanship of Graduate Studies and Scientific Research
Al-Ahliyya Amman University, Amman, Jordan

ISSN (Print Version): 1684-0615

ISSN (Online Version): 2616-2814

Reducing Costs by Applying Activity-Based Costing Systemand the Possibility of the Application in the Banking Sector:An Empirical Study on the Housing Bank for Trade andFinance


Volume 19, Issue No 2, 2016

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Pages: 11 - 19


Abstract


This study aims at exploring the possibility of applying the Activity-Based Costing in the banks through a Case study of the Housing Bank for Trade and Finance. The related data was collected from the relevant literature, and the annual report of the Housing Bank for the year 2013. The researchers relied on the Bank’s income statement analysis for the year 2013, which showed that the bank allocates all the operation costs to the income summary account according to the traditional costing system. The results showed that the Bank is still applying the traditional costing system, notwithstanding the fact that the ABC system can provide the Bank with many benefits such as reducing operational costs, accurate computing of customers cost, and increasing the Bank Profitability.


Author Details



Keywords


Activity – Based system, 

Housing Bank for Trade and finance, 

Costs assigning.

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