Adopting an Activity-Based Cost Management Model at A Community College: A Case Study. Issue 7 (2nd July 2020)

• Record Type: Journal Article
• Authors: Tirol-Carmody, Kristina; Kardash, Nadia; Chang, Karin; Ecker-Lyster, Meghan
• Is Part Of: Community college journal of research and practice. Volume 44:Issue 7(2020)
• Page Start: 482
• Page End: 491
• Publication Date: 2020-07-02
• Subjects: Community colleges -- United States -- Periodicals; 378.15430973
• DOI: 10.1080/10668926.2019.1616005
• Languages: English
• ISSNs: 1066-8926

Abstract

ABSTRACT: This paper discusses the key findings from a qualitative case study examining the implementation of an activity-based cost management model (ABC model) at a large community college. In a climate of fiscal uncertainty, the college adopted this model with the goal of improving budgetary decision-making. The paper examines faculty and administrators' perceptions about the model, specifically surrounding the model's potential to improve institutional functioning. We also examine stakeholder perceptions of potential barriers to successful campus-wide implementation, as well as its potential impact on the college's culture surrounding cost management. Findings indicate that key stakeholders believe the ABC model has potential to increase efficiency by providing more holistic cost allocation data that better capture granular organizational cost drivers. However, stakeholders also believe that full implementation will hinge on a common, campus-wide understanding of the model's benefits, as well as campus-wide shift in cost management culture.