The reality of cost accounting in Libyan commercial banks

Abstract

The study aimed to identify the reality of cost accounting systems in Libyan commercial banks, by identifying the availability of the basic elements for the application of cost accounting tools in Libyan commercial banks.

To achieve the objectives of the study, the descriptive approach and a set of statistical packages were used in analyzing the results of the study and testing its hypotheses. A tight questionnaire was used that was designed and developed based on previous studies and the theoretical framework of the study. The study targeted all the elements working in the Accounting and Financial Management Department and its departments in the Libyan commercial banks, numbering (14) banks in Tripoli. As for the study sample, a simple random sample method was used to represent the community and they were represented by (195) employees distributed to the sample members. (195) questionnaire forms were distributed to the sample members. The number of missing forms was (16) forms, of which (179) forms were received, of which (20) forms were not valid for analysis. Thus, (159) completed and reconciled forms were used for analysis, i.e. with a retrieval rate of (81%), and the data were analyzed using the statistical program (SPSS).

The most important results of the study showed that most Libyan commercial banks in Tripoli have clear organizational structures that define the competencies and responsibilities of all departments and sections within banks, and have an appropriate accounting system that ensures the provision of the necessary financial data and information, through the existence of accounting books and records and a sufficient documentary group to document financial operations and rely on electronic systems to register and prove all operations within banks. This is a good and important indicator that indicates the availability of some of the necessary elements for the application of cost accounting tools in Libyan commercial banks. However, banks face a number of obstacles, the most prominent of which is the lack of sufficient support from senior management in Libyan commercial banks due to the lack of spending to hold specialized training courses for employees and encourage them to participate in international institutes and associations specialized in the field of banking cost accounting, and the lack of an appropriate set of statistical and analytical books that serve the purposes of management in planning, control and decision-making