Application of Activity-Based Costing Method in Calculation the prime Cost of Medical Students’ Education

Calculating the prime cost of student education is one of the requirements for achieving the goals of the country's development programs in terms of improving the efficiency of universities. It is also one of the most important goals of the transformation and innovation program in medical education. This study aimed to calculate the prime cost of education for students of the School of Health at Bam University of Medical Sciences using activity-based costing method.

The present study is a descriptive cross-sectional and retrospective study. The required data were collected through designed forms. Then, the service prime cost was calculated using the activity-based costing method and Excel 2016 software.

The results showed that the total cost of Bam School of Health was 31016503943 Rials. Of this amount, the environmental health group has the highest (22.53%), and the health services management group has the lowest (9.34%) costs among the existing educational groups. Also, among the cost chapters, the largest share is related to the expenses of the first chapter, salaries and wages.

In this study, a cost analysis was performed by cost chapters.  This approach in cost analysis helps planners to estimate a fixed cost enabling them to determine a fixed level of benefit and creating the lowest possible cost. It will help universities to be more accurate and efficient in using the resources available to them.