Implementation process and lessons learned in the determination of educational cost using modified activity-based costing (ABC) / Ruhanita Maelah ...[et al.]

Maelah, Ruhanita and Md Auzair, Sofiah Sofiah and Mohd Amir, Amizawati and Ahmad, Azlina Azlina (2017) Implementation process and lessons learned in the determination of educational cost using modified activity-based costing (ABC) / Ruhanita Maelah ...[et al.]. Social and Management Research Journal (SMRJ), 14 (1): 1. pp. 1-32. ISSN 1675-7017

Abstract

Putting in place accurate cost information for the outputs of universities is no longer a choice but a necessity if a university is to have a worldclass management system. Nevertheless, the current costing systems are not designed to support management-related information with fund accounting and budgetary control systems dominating the mind-sets of the administrators of universities. In support of an autonomous pathway for public universities in Malaysia, Universiti Kebangsaan Malaysia has piloted an educational cost determination exercise using the activity based costing (ABC) system. Instead of proposing a major overhaul to the system, an ABC model that takes into consideration existing limitations was developed. While far from being perfect, the model is workable within certain limitations. This study examines the process involved in the exercise of determining educational cost based on the modified ABC approach. Nine critical steps are explained and the lessons learned from the exercise are highlighted. This study contributes to the theoretical knowledge by providing empirical evidence of the application of ABC in a service setting, or, more specifically, in a university. In terms of practice, this study provides guidelines concerning the determination of educational cost to interested parties including the university’s management, Ministry of Education and other universities.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Maelah, Ruhanita
ruhanita@ukm.edu.my
Md Auzair, Sofiah Sofiah
UNSPECIFIED
Mohd Amir, Amizawati
UNSPECIFIED
Ahmad, Azlina Azlina
UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Cost effectiveness
Divisions: Universiti Teknologi MARA, Shah Alam > Research Management Centre (RMC)
Journal or Publication Title: Social and Management Research Journal (SMRJ)
UiTM Journal Collections: UiTM Journal > Social and Management Research Journal (SMRJ)
ISSN: 1675-7017
Volume: 14
Number: 1
Page Range: pp. 1-32
Keywords: Activity based costing, educational cost, university, process
Date: June 2017
URI: https://ir.uitm.edu.my/id/eprint/13586
Edit Item
Edit Item

Download

[thumbnail of 13586.pdf] Text
13586.pdf

Download (358kB)

ID Number

13586

Indexing

Statistic

Statistic details