Study On Educational Cost Accounting Of Changsha Normal College Based On Activity-based Costing

For a long time, people only regard education as consumption and welfare, andconsider school as non-profit organization. While this traditional idea has neitherprovided internal motivation for educational department or organ to improvingeducation recourses efficiency, nor given external pressure for increasing jobefficiency. Market economy’s "Survival of the Fittest" and resource allocation’s"Survival of the Most Powerful" as well as the contradiction between lack and wasteof education resources, make it a severe challenge for the development of highereducation.Therefore, it’s a necessary and urgent thing to discuss and study educational costaccurate accounting and analysis in colleges and universities for further survival anddevelopment. We have to take the cost and benefit into consideration when managingeducation, highlight the educational cost management, spread more accurateaccounting of educational cost and control mechanism as well as establish a scientificand effective educational cost accounting system. These measures are significant tobuild a conservation-oriented campus and realize a sound, stable education withsustained development.Since the foundation, Changsha Normal College had lacked of costconsciousness for years and adopted undeveloped estimated accounting method. Withthe increasingly fierce competition among colleges and universities, ChangshaNormal College is affected by heavy pressure for enrolling new students. highenrolling costs, disparate major scales, deficient educational funds and low economyof resources. So the college leadership enhanced management decision and has anunprecedented requirement about cost information with more scientificity, accuracyand pertinence. An accurate educational cost accounting and control method is neededthere. This paper absorbed the quintessence of activity-based costing and tried to usethat it to check Changsha Normal College’s educational cost as well as explored a newway of educational cost accounting.First of all, this paper introduced the theory of college educational cost andactivity cost and presented fundamentals and features of these two costs. It concludedthat college can use activity-based costing to manage the cost through telling theadvantages of using that method. Then this paper analyzed educational costaccounting status of Changsha Normal College and proposed to introduce the activity-based costing into educational cost accounting as well as designed theoperation and calculation.