Abstract
ABSTRACT This case study deals with a bank that intends to improve its client profitability using Activity-based Costing. It can serve both as a discussion basis in class as well as an exam for advanced Master students in management, marketing, and accounting. The case illustrates how variance analysis and Activity-based Costing help managers to better understand the different profitability of customer groups in their portfolios. The rather open questions at the end of the case study allow for an adjustment to the level of knowledge of the students. They also serve the purpose of raising students' awareness of the limits of customer accounting. Students will need to reflect on how a mechanical application of customer profitability analysis can lead to dysfunctional decisions that run counter to a company's business model. Keywords Customer Accounting; Customer Profitability Analysis; budget; variance analysis; business model; management accounting; banks; banking; case study; teaching notes; shareholder value; dysfunctional decision making.
Published Version
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