The Control Of Educational Cost For Private Higher Education In China

Since the reform and opening-up policy, China’s private higher education rapidly develops and the number of them and theenrollment in private colleges increases year after year, which greatly enrich China’s higher education. After years of development,private higher education has become an important part of China’s higher education. In background of situations that our country facesa large population, a weak economic foundation, short educational funding, private capital investment to the field of higher educationnot only is a strong solution to the lack of education funding, but also promotes the diversification of education. However, there aremany difficulties and problems in the rapid growth of private universities, such as, lack of budget management, non-standardizedaccounting system, shortage of funds, unstable personnel and financing difficulties. These problems have plagued private colleges anduniversities, and which are a serious impediment to the development of them. Meanwhile, because China’s private colleges completelyrely on students’ tuition and accommodation fees without government financial support, they could survive and maintain developmentin year of adequate students’ enrollment and their functioning is not a problem. But the impact to them is therefore inevitable once thestudents will reduce. Especially with dwindling students of private universities in recent years the pressure to survive is graduallyincreased, and some private colleges have closed down due to being unable to recruit students. Therefore, under the circumstances ofstable revenue sources and in order to achieve their own private college’ scientific development a very worth-exploring issue is how tomore effectively control the cost of education; how to take the greatest use of the limited funds of private universities; how to do moreand better things with limited funds. At the same time, only must private colleges and universities understand the current situation ofChina’s economic development, could they find a way-out and continue healthy development and a path-out for their own healthydevelopment through scientific and effective management to enhance their competitiveness in order to achieve sustainabledevelopment.Cost accounting of Higher Education is based on certain methods and procedures, which help account all the costs incurred in thecourse of conducting a variety of educational processes, that cost is all the currency cost of various resources which colleges anduniversities used to educate students reach a certain level of education. Compared with China’s national colleges and universities,China’s private higher colleges have no financial support from the Government. Thus, the optimal control of the cost for private highereducation private colleges has become a top priority in the management control process. This dissertation is based on a wide literaturefrom home and abroad and explains the basic principles of cost accounting of private colleges of education and common methods, andthe current situations of cost control of the private higher education costs, combined cybernetics, labor value theory and the principal-agent theory and other related knowledge.This dissertation also points out that the importance in the cost control of education in private colleges and universities andanalyzes the causes of the problems of private higher educational cost control. Savings means revenue. Cost control has importantpractical significance in prior analysis to cost of private colleges and universities, and during the cost control processes and theirhindsight, which will enhance and maximize the overall value of private colleges and universities. Then, take Henan’s A privatecollege for example, through its principal business accounting process to the distribution of the major items of expenditure, thisdissertation calculates the cost of education summary, its accounting of the cost of education, and points out that the cost of educationin A private college’s control process in budget management, accounting regime and regulatory deficiencies. Finally, based on theimportance of analyzing the reasons for the importance of regulatory costs in A private university budget management of cost control,this dissertation summarizes A private university’s budget cost management and control improvement measures to improve costaccounting measures and regulatory regime to control cost control improvements. Through the implementation of related measures,we can greatly improve the ability of China’s private higher education’s cost accounting management, as well as the cost of educationwith reference to the control of other private universities.