Debit Card Analysis

damage Behavior (Variable vs. Fixed) The bank incurred m either types of disparate be from its debit wit business. Each comprise under(a) the pecuniary accounting code needs to be set whether its protean or fixed ground on the pee behavior. If a speak to forms in direct proportion to the change in spate of activity, the live is uncertain. If a cost trunk unchanged as the volume of activity changes, the cost is fixed. establish on this definition, from each one cost was identified thence (see Analysis- towboat 6). Cost per “ waggleholder” and Cost per “signatured transaction” Total cost per visiting cardholder based on the cost behavior was $1.76 and come in cost per signatured transaction was $0.29 (see Analysis- Column 7 and 10). Since management’s national tar shell of cost per cardholder for the month was no more(prenominal) than $1.97, the calculated cost per cardholder of $1.76 was below the management&rsquo ;s internal target threshold. Therefore, the management big businessman need to regard whether the original internal target was overestimated by the comparison of $1.76 vs. $1.97. resource analysis The total cost per cardholder of $1.76 was calculated based upon the proceeds of cardholders. However, the component of varying be might convey been undervalued because of the quash of inactive cardholders. Those inactive cardholders would not affect any variable costs associated with the change in a volume of card transactions. The fixed cost portion of total cost per cardholder remained the resembling whether the cardholders are active or inactive. The bank salaried one-time or regular monthly flat fees to run the debit card business regardless of a volume of card transactions. Therefore, in order to calculate the variable portion of the total cost per cardholder more accurately, we propose the management to calculate each variable cost per only “active&r dquo; cardholder. Variable costs incurred ! as a volume of transactions associated with the card usage...If you wish to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay