Cost of deposit accounts
Originally published by: Guaranty Trust Company of New York
Abstract
COST accounting is usually associated with a manufacturing business, and the average person, if he thought about it at all, would say that a bank is the last place where it would be adaptable. Yet a bank or trust company has money and services for sale and it is essential that the costs of money and services rendered should be known, and unprofitable business eliminated or made profitable, especially in these days of high operating costs. A deposit account on its face may appear profitable; nevertheless proper analysis may show it to be actually unprofitable at the rate of interest carried by it, while it might be profitable at a lower rate
This paper has been withdrawn.