Monitoring and Evaluation Information System Modeling Using Activity-Based Costing Method in Banking Credits

Abstract

The purpose of this research is to develop a model of the monitoring and evaluation information system for banking credits by using Activity-Based Costing (ABC) methods (XYZ-Sharia Bank in Indonesia, as a case study). Nowadays, the high percentage of the ratio of Operating Expenses and Operating Revenues are the finding problems in sharia banking operations. In this case of study, that  92.78% of the operating income obtained by the XYZ Sharia bank is used to finance the bank's operations. Based on this fact, the ABC method applied to track costs especially in this case for the product or process of banking credit. The ABC method also traces resources to activities than to cost objects for more accurate cost distribution. Therefore, serious consideration is required to use the ABC method in realizing the modeling of monitoring and evaluation of information systems in the banking credit activities. The result of this study shows that activity-based costing method in monitoring and evaluation of information system modeling in bank credits provides a good starting point in heading toward better decision making. Thus, this case study contributes how an ABC costing method that improves banking credits operations. So this is a better meet the needs of Sharia Banking in a more cost-effective manner.