Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Examining Cost Accounting Systems Practices in Commercial Banks: Evidence from Kuwait

Author(s): Awwad Alnesafi

This study examines the significance of applying Cost Accounting System (CAS) in Kuwait commercial banks, especially with reference to service pricing. In addition, it identifies the difficulties facing the implementation of the CAS in Kuwait commercial banks. To this end, a questionnaire was prepared and distributed to 11 banks. The results show that only a few banks in Kuwait implement the CAS. The committed banks believe that dividing the institution into cost centers assists in measuring the cost of the unit of banking service with high accuracy. For them, a manual for the cost elements is another helpful factor to find lists and reports and hold comparisons according to fixed criteria. The cost data are commonly used to measure the cost of each service, to take administrative decisions about developing and expanding some banking services and to assess the performance of the department managers. The cost data are used in the pricing, reviewing and assessment of the banking services.

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