Resource consumption accounting method in the cost calculations of banks: An application during the pandemic period

The most important result of globalization for businesses is the national or international competitive environment. In this competitive environment, businesses have to operate with low profit rates. Businesses need to modernize their costing methods in order to increase their profitability. The most important decision maker of financial accounting and management accounting is cost accounting. To date, businesses have used many cost methods. The prominent of these cost methods today is resource consumption accounting (RCA). RCA is defined as a management accounting system that aims to provide accurate and reliable information in order to reduce costs to minimum levels, maximize profit rate, increase capacity profitability, and target success in the competitive platform between enterprises. RCA aims to minimize the cost of products or services by keeping cost calculations dependent on resources and to maximize operating income and earnings. In addition, RCA wanted to show that the correct and efficient use of unused and idle capacity is an important factor in unit cost calculations and in the decisions to be taken by the management. Banks are the institutions that carry out financial and economic activities in the national and international arena. Banks; It is among the financial institutions that provide deposits and loans, offer various investment opportunities, facilitate money transfer, offer the convenience of securely storing valuables, allow many payment transactions, and carry out foreign exchange transactions and economic activities. The banking sector has a key role in national economies and is an indispensable part of the economic infrastructure. Global competition, digitalization and the epidemic disease (pandemic) period that started in the first months of 2020 affected all businesses as well as banks significantly. Decreasing revenues but costs that cannot be reduced at that rate reduce the profitability rates in banks. Due to the epidemic (pandemic) spreading rapidly all over the world, consumer habits and in parallel with this, the managerial understanding in businesses has changed greatly. With the increasing variety of products and services in the banking sector in line with customer demands, the need for different approach styles in terms of cost calculation methods has emerged. With the onset of the pandemic period in Turkey, as in the world, the economic contraction has affected the entire sector. Banks are among the affected sectors. In this study, the KTM method has been proposed and discussed in a practical way so that banks can calculate their cost calculations accurately and reliably. In addition, the KTM method is introduced in detail.