Research On The Application Of Activity-based Costing In Education Cost Accounting Of Private Colleges And Universities

Activity-based costing has been widely used and developed in manufacturing industry.This is driven by the fact that the manufacturing industry,with the development of the Internet economy and information technology,which is bound to require a reasonable and accurate distribution of its huge indirect costs.If the cost accounting control system of manufacturing industry is directly applied to higher education,it must be confused because of the different characteristics of cost control.Because of the difference between the two fields,for many years,scholars have tried to introduce activity-based costing into higher education cost accounting mechanism,which has not been fully established.The confusion is manifold.Including the division of some cost accounting content,there are many points of view,even contradictory to each other.For example,whether scientific research funds should be included in education costs,whether retireesundefined wages should be stripped from education costs,and so on,are not defined with authority.In the first half of this paper,it discusses the basic concepts that need to be solved by introducing activity-based costing into civilian-run colleges and universities.It includes the connotation and composition of education cost,the composition of direct cost and indirect cost,the activity,cost center,resource,activity allocation rate and so on.In particular,the feasibility and necessity of introducing activity-based costing under the special status of non-governmental colleges and universities in China are analyzed.Then,based on the characteristics of college work,this paper analyzes the cost accounting of colleges and universities in detail,especially the difficulty of introducing activity-based costing into the cost accounting of private colleges and universities and the feasibility of introducing activity-based costing.After analyzing the basic categories of work in colleges and universities,this paper further puts forward the application process of activity-based costing in the cost accounting of education in colleges and universities.The above flow chart is also the innovative thinking of this paper.In order to explain the advantages of activity-based costing(ABC)in the process of cost accounting of education in colleges and universities,this paper selects a civilian-run university founded earlier in China as a case study.In this paper,the private college is named TTP College.Using the application of activity-based costing in its 2018 annual budget,this paper analyzes the cost of freshmen and seniors of the secondary school of education of the college.First,the education and teaching resources of the TTP Institute are decomposed and combined.By setting up eleven assignments,such as enrollment,educational administration,teaching,further study,experiment,homework,examination,graduation thesis design,employment,period cost,college amortization,etc.,the budget cost of the Institute of Education under the activity-based costing method is calculated.Finally,it is found that the tuition fees of freshmen are higher,while the tuition fees of higher vocational students are a little insufficient,which can be properly increased.In particular,the data analyzed in this paper show a true and interesting message,that is,the cost of training for freshmen and older is quite close to.If we understand from the input of education,the investment in education of the old students in this school is actually insufficient.It shows that the management of the school tends to be conservative and the investment of teaching resources is lack of strategic planning.Finally,comparing the calculation results with the tuition fees,it is found that the activity-based costing method can play a better role in forecasting the cost budget and control of colleges and universities.