A New Approach of Implementing Integrated and Systemic Costing Model in Higher Education (Case Study: Shiraz University)

Precise costing is the basic tool for financial clarity, performance assessment and management responsibility. This study aims to present a new method considering qualitative and quantitative characteristics and also by taking the performance cycles of universities into account to determine the cost of education and research outputs at universities. This is a case study for 2017 fiscal year and the first and second semesters of 2017-18. This study draws on an inductive approach to implement a new approach based on an integrated-systemic approach in costing model. Observation and interview were used to identify the drivers relevant to the activities (For both of the Operational and Supporting Units). The costs of all the Responsibility centers, Activity centers and Cost Objects (Outputs) in Shiraz University have been calculated using the new approach in 11 stages (congruent to the environmental features of Iran universities). Having some adjustments to the Activity-Based Costing, in addition to quantitative elements, qualitative and time factors were also systematically considered in determining the costs. The costs were calculated at the highest accuracy which can be a proper tenet for the implementation of Performance-Based Budgeting.