JAIIB | AFM | CASE STUDY ON COSTING TECHNIQUES

Costing techniques play an essential role in decision-making and financial management, particularly in the banking and financial sectors. For JAIIB aspirants, considering these techniques is significant for efficiently managing resources, controlling costs, and enhancing profitability. Learning Sessions presents this article that explores key costing techniques covered in the Accounting and Financial Management (AFM) module of the JAIIB, along with a case study that applies these concepts in a real-world banking scenario.

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Key Costing Techniques in the AFM Module:

-Marginal Costing:  Marginal costing, also known as variable costing, focuses on separating fixed and variable costs. 

-Standard Costing: Standard costing involves setting predefined costs for various operational activities.

-Activity-Based Costing (ABC):  In banking, activity-based costing is used to allocate overhead costs based on specific activities. 

-Absorption Costing: Absorption costing, also known as full costing, assigns all manufacturing costs, including fixed and variable costs, to individual products or services. 

-Job Costing: Job costing assigns costs to specific jobs or batches. In a banking context, this technique can be applied to special projects, such as large-scale investments or restructuring initiatives. 

-Process Costing: Process costing is used to assign costs to continuous processes, which is useful for banks handling a large volume of similar transactions.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB AFM Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

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In the end, Costing techniques are important for managing financial operations in banks and financial institutions. For JAIIB applicants, mastering these notions is key to advancing their careers in the banking sector. The application of the techniques, as shown in the case study, highlights how a systematic approach to cost management can lead to significant operational improvements. Mastering these costing strategies will not only help in passing the JAIIB Accounting and Financial Management (AFM) exam but also prepare candidates for real-world financial challenges in the banking sector. Learning Sessions provides additional information about JAIIB AFM INCOME TAX by giving examples of real life scenarios.

Learn more about this case study through our YouTube channel and PDF.

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