Ability evaluate along with clarification of Activity Based Costing usage for money cost determination within country banking network

Subject Areas : Management Accounting

Fereidoon  Rahnamaye Roodposhty ¹ (نویسنده اصلی و مسئول مکاتبات)
Jamal  Bahry Sales ² (ندارد)
Asgar  Pakmaram ³ (ندارد)

Received: 2009-03-15 Accepted : 2009-05-24 Published : 2009-03-21

Keywords: Activity Based Costing System, Cost, country banking network,

Abstract :

In every country economic relative, financial institutions contain serious and veryimportant role and with increasing the competitions in traditional activities, complexity oftransactions and financial markets growing, every day financial and credit institutions have afresh aspects. This institutions constantly attempt with the aim of implementation of polices inproportion by market demand as well as diversify its services and improving that, apportion amore share of market demand for its. These two strategies within their substance require forstrategic evolution in technology of serve and value creation for clientele. One of topics thatdiscuss in this case, employ of appropriate along with accuracy determination method ofproducts cost. In fact, in currently universal competition also changes, the accomplishment ofthree vital factors such as quality, time(function) and cost (triangle survival elements) forgoing concern of all the institutions be assurance. In this article, we attempt to discuss one ofthe most significant elements of this triangle that is cost of money within country bankingnetwork. By consider the amount and quantity of transactions than other institutions withinsingle monetary institution, the importance of determination of this price into one scientificand precision way is more essential.consequently, during this study by represent the approach of cost calculate in countrybanking system and complete appraisal of all that aspects concerning its agreement withIslamic banking rules, legal, scientific and survey the consequence of different methods thatused for determination of this price, we try that choose and represent proper model fordetermination of money cost. For examining of presented model through using financial andoperational information of west Azerbaijan province Mehr institute, cost of money computeand analyzed.The result of this study explanatory as follows:a. To prevent within any deviation as well as to obtain proper financial reports, inparticular Islamic banking principal compliance, necessarily, determination base forthe price of financial and credit services into financial and credit institutions andbanks, must be present upon the cost.b. Present existing methods don’t proper to cost determination and the most excellenttechnique of cost determination for banks, financial and credit institutions, includemake use of Activity Based Costing (ABC) technique.