Activity based costing in an Australian university: a pilot of social and behavioural sciences

The Department of Education, Training and Youth Affairs have has recently commissioned KPMG Consulting Proprietary Limited to undertake a review of costs of teaching and research training in Higher Education. In 1998, DETYA commissioned a study by Ernst & Young to develop costing methodology thatmethodology that advocated the use of Activity Based Costing was advocated. Accordingly the costing of Australian Higher Education has become a national issue. This study applies principles of Activity Based Costing to the discipline of Social and Behavioural Sciences undertaken as part of a pilot study within an Australian uUniversity. It presents analysis of cost data using three cost objects including Teaching and Learning, Research and Professional and Community Service. It concludes by proposing future enhancements to the methodology as well as considering possible future implications of the findings of the study.