Using Activity-Based Costing to Manage More Effectively

This report examines the value of activity-based costing (ABC) for decision-making in public-sector universities. The study shows how activity-based costing can be applied to institutions of higher education and could improve the information available...

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By

Igor Vaysman

Assistant Professor, Accounting and Control

INSEAD 64694399 igor.vaysman@insead.edu

David E. Platt ,  Michael H. Granof

This report examines the value of activity-based costing (ABC) for decision-making in public-sector universities. The study shows how activity-based costing can be applied to institutions of higher education and could improve the information available to academic administrators, legislators, voters and customer. The purpose of this report is to demonstrate the feasibility and benefits of, and obstacles and limitations to, applying ABC in an academic environment. Financial Management

ABC