How do banks choose a certain costing system and why

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

This work project has the purpose of examining how banks choose a certain costing system and why. A survey addressed to all banks operating in Portugal was used to identify which organizational, contextual and cultural factors influence the banks’ decision to adopt a specific costing system. The importance of cost control, cost information and top management support, which are omitted factors from other studies, as well as nationality and cost structure were found to be statistically significant. No association was detected between the decision of adopting a costing system and the factors product diversity/complexity, level of competition, size of the bank and business segment.