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Activity-based costing (ABC) Model for Public Higher Education Institutions (PHEI) : A guide for a Model development

International Journal of Management and Information Technology

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Field Value
 
Title Activity-based costing (ABC) Model for Public Higher Education Institutions (PHEI) : A guide for a Model development
 
Creator Hashim, Jamalludin Helmi
 
Subject Accountancy, Management Accounting
Activity-based Costing (ABC) Model; Traditional costing system; Case Study; Public Higher Education Institutions (PHEI), Cost comparison
 
Description The purpose of this study is to develop the Activity-based costing (ABC) model for Bachelor of Accountancy (BACC) program in University of Excellence (UoE) Malaysia. A case study approach using the professional software, ABM-SAS, and the actual expenses figure for BACC for the year 20XX were used to develop the ABC model in this study. The finding showed that the cost computed using the ABC Model is lower as compared to the cost from the traditional (current) method, i.e. RM 8,678.54 and RM 10,509.99, respectively.  The differences amounted RM 1,830.55 in cost calculated by these two systems is not surprising. It is expected as many other researchers have discovered the same pattern on the lower cost of ABC as compared to the traditional method due to several reasons. Among others are,  (i) the inability of the traditional costing system in spreading their costs over larger numbers of students, ii) the support services do not benefit the programmes uniformly and, iii)  there were internal cross-subsidies among departments and seriously distorted if support costs were allocated based on head counts. As such, this study confirmed the ability of ABC to act in higher education institutions with the same functions as its functions in the profit and manufacturing setting.
 
Publisher CIRWORLD
 
Date 2012-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Case Study
 
Format application/pdf
 
Identifier https://cirworld.com/index.php/ijmit/article/view/696
 
Source INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY; Vol 7 No 3; 1089-1100
2278-5612
 
Language eng
 
Relation https://cirworld.com/index.php/ijmit/article/view/696/680
 
Rights Copyright (c) 2013 INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY
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