The Study Establishment of the activity based accounting to allocate budget tothe operations of universities

In common budgeting system of high education institutions, the budget is distributed based onvarious parameters as number of scholars, board members and staff. That is, the expenses areallotted according to a volume –based criterion and no discrimination is carried out among kindsof scholars’ expenses in different fields of study. And also the amount of operational expenses isassumed to be the same for all courses. However, the expense of some courses are covered by theextra sources resulted from presenting other courses. On the other hand, with regard to article 94of the law of 9th economic, social and cultural development program of Iran in which the budgetsof public high education universities and institutions will be allotted based on the costs of theoperations, and also with regard to comprehensive development of high education institutions inIran the need for improving and promoting management and controlling models of financialresources is increasingly understood. This issue can cause such institutions and universities toapply more concentration on efficiency of financial sources. The only way to meet such goals isthe establishment of Activity Based Costing(ABC) system in budgeting of high educationinstitutions. The special characteristic of this system that discriminates it from the presentbudgeting system is its emphasis on goals, results and products of each of the expenses whichincreases the universities’ answerability power. Therefore, the following article will try to clarifythe administrative phases of establishing such budgeting system in Payam Noor universities

کلیدواژه ها:

accounting ، costs ، operational budgeting ، activity-based costing