A key performance target for many banks is to reduce staff costs as a percentage of total bank costs.
The launch of first telephone banking and then internet banking for personal customers (both services enabling bank customers to access their bank accounts, transfer funds and pay bills on a 24-hour basis) has enabled the banks to vary the level of bank staff involvement in the provision of these services and to provide a relatively cost-effective service.
4.2 The accounting aspects of back-flush accounting
§ Back-flush accounting offers an abbreviated and simplified approach to costing by getting rid of ‘unnecessary’ costing records.
§ In the examination you will not be required to perform the double entry for back-flush accounting.
A traditional system
§ A traditional costing system will include the following Τ accounts:
