Page 52 - MA - May 2017

COVER ST OR Y

1. Exchange received on Issuance of DDs: 4. Terzioglu B & Chan E S K, “Towards understanding
Rs.1781.85 the complexities of service costing: A Review and
2. Exchange received on Issuance of MTs: Rs.3.00 Practice”, Vol. 11, No. 2, 2013, JAMAR
3. Exchange received on Issuance of TTs: Rs 235.00 5. Kaplan R & Cooper R, “Cost and Effect: Using
4. Exchange received on Cheques Purchased: Integrated Costing Systems to drive profitability
Rs32467.50 and performance”, Harvard Business School Press,
5. Exchange received on Cheques sent for Collection: Boston, MA 1998.
Rs3600.00 6. Ansari, S J Bell, T Klammer and C Lawrence,
6. Exchange received on Bills sent for Collection: “Strategic Management Accounting”. Richard D
Rs1200.00 Irwin 1997.
Total Loss Rs39287.35 7. Kaplan R S, “Measuring Manufacturing
Performance: A New Challenge for Management
Constraints in adopting Activity Based Costing in Accounting Research,“ The Accounting Review,
Banks October. 1983, pp 686-705.
The main question emanating from the many 8. Kaplan R S, “Yesterday’s Accounting Undermines
paradoxes of cost accounting is why organizations keep Production,” Harvard Business Review, July/August,
usinguseless costing systems? The answer is that many 1984, pp133-39.
organizations regard their cost systems as the lesser of 9. Kaplan R S, “Accounting Lag: The Obsolescence of
two evils. They must have a cost system for financial Cost Accounting System,“ California Management
reporting, decision-making decentralization, price Review, Winter 1986, pp 174-99.
justification, control and performance measurement. 10. Rui Vieira and Keith Hoskin, “The Implementation
Since ABC requires more effort without delivering better of Activity BasedCosting in a Portuguese Bank”IX
results, most organizations hold on to their traditional Congresso Internacional de Custos - Florianópolis,
cost systems . SC, Brasil - 28 – 30 Nov 2005.
9
Indian banks willy nilly have been moving towards 11. Nitza Geri a and Boaz Ronen, “Relevance lost: the rise
accepting activity based costing along with still relying and fall of activity-based costing”, Human Systems
on conventional costing methods. Management 24 (2005) 133–144 133 IOS Press

References Note: In some of the examples and cases shown above
1. “Report of the Banking Commission”, Government has depicted certain products like “mail transfers”,
of India, New Delhi, 1972. which is now almost defunct, drafts and telegraphic
2. Ghosh, A K; B B Banerjee and B Mitter, “Cost transfers are also getting replaced by National
Accounting in Commercial Banking Industry,” The Electronic Funds Transfers (NEFT) and Real Time Gross
Institute of Cost and Works Accountant of India, Settlements (RTGS). Banks are, in general, reluctant to
Kolkata, 1979. share their latest data, hence the reliance on earlier data
3. Narasimhan M S & Ashok Thampy, “Activity Based showing few now redundant products.
Costing in Banking Service: A case study of a large
Indian Private Sector Bank”, Prajnan, Vol 31, Issue
No. 2, 2002 Pp 97, NIBM, Pune. dgr123@gmail.com

Articles invited

We invite quality articles and case studies from members in the industry with relevance to Cost
and Management Accountancy, Finance, Management, and Taxation for publication in the
journal. Articles accompanied by color photographs of the author can be sent to: editor@icmai.in

52 The Management Accountant l May 2017 www.icmai.in