Research On Theory And Application Of Activity-Based Cost Management At Universities

Higher education in China is marching toward mass stage rapidly. Though the government invests a lot in universities, students and their families spending more and more on higher education,the shortage of funds for higher education is still a main factor of restricting the development of higher education in China . On the other hand,the use of higher education resources is deficient because universities pay little attention to cost management and the method of cost management at universities lags behind. So,it is essential and urgent to adopt the effective method to strengthen the cost management of universities. In order to offer a new idea and tool and to find an effective way for the cost management of universities, the thesis introduces an advanced method, activity-based cost management (ABCM), into universities. Adopting documental method combining with investigation, qualitative research combining with quantitative research and the method of comparison, and based on the successful application of ABCM to other industries and the special situation and requirement of the cost management at universities in China, the thesis analyzes the feasibility of application and tentatively probes into the concrete application of ABCM at universities. Besides the preface and conclusion,the full thesis is divided into four parts: Part â… introduces the theory of ABCM briefly. It includes the background and theoretical foundation,several basic concepts,basic principles and the advantages of ABCM comparing with traditional cost management. Part â…¡analyzes three main characteristics of cost management of universities in China firstly. And then it expounds the significance of ABCM at universities on this basis. Finally, it analyzes the feasibility of practicing ABCM at universities in China according to the characteristics of ABCM itself and the experience of practicing ABCM in other countries. Part â…¢, the focal point of this thesis, probes into the concrete application of ABCM at universities from four aspects. The first aspect is about activity-based cost calculation at universities. Using former research results for reference, it expounds the steps and methods of activity-based cost calculation at universities. Especially, it puts forward different opinions from others on division of activity pools, choices of cost divers and distribution procedures of costs and expenses. The second one is about activity-based cost prediction at universities. It puts forward the predicting procedures of educational cost of universities and briefly explains the concrete predicting methods. And it points out emphatically the question of operating balance about the restrictive resources of universities. The third one is about activity-based cost controlling at universities. It mainly discusses how to establish criteria of activity-based cost controlling at universities and the ways of analyzing the activity-based cost differences of universities. The fourth one is about activity-based cost analysis. It at first brings forth the processes and measures used to find the critical points to cut the cost down through activity-based analysis. Then it states how to reduce educational cost of universities continuously through activity-based management. In this part, the thesis also combines with quantitative analysis, using concrete figures to illustrate the application of ABCM at universities. Part â…£firstly analyzes the problems confronted in the practice of ABCM at universities in China nowadays. Besides, it gives several pieces of advice to counter these problems. ABCM at universities is a large system. The thesis makes only superficial research on theory and application of ABCM at universities, and the author will go on with the research on the defects in the subjects.