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ERIC Number: ED220035
Record Type: Non-Journal
Publication Date: 1982-Apr
Pages: 18
Abstractor: N/A
Reference Count: N/A
Cost Analysis and Overhead Charges at a Major Research University. AIR Forum 1982 Paper.
Young, Michael E.; Geason, Ronald W.
The development of a cost allocation model at Ohio State University is discussed. The model was designed to measure the direct, indirect, and total operating costs of university operations and to recover general fund overhead costs associated with unrestricted general fund support of auxiliary enterprises and revenue-generating activities. The cost data were also designed to determine full and direct costs per student credit hour and per major by student level for incorporation in policy analyses. The Costing and Data Management System (CADMS) of the National Center for Higher Education Management Systems (NCHEMS) was used as the computational device to support the project. The step-down method of cost allocation was used, and 26 steps were employed to allocate unrestricted costs to auxiliary enterprises and earnings operations. These sequential steps were arranged in a descending hierarchy according to the distribution of service benefits. Thirty-five parameters were used with the NCHEMS software to calculate percentages of overhead costs to be allocated to various recipients of overhead services. It was decided that some scaling of recovery rates was desirable, and it was concluded that full overhead costs should be allocated to operations doing business primarily with the general public or with other university operations, and that lower recovery rates should be assigned to units providing services to academic departments or students. Attention is directed to (1) changes that were implemented in the approach as economic times grew more difficult and (2) future development of the cost allocation model. Information about the CADMS software and a bibliography are appended. (SW)
Publication Type: Speeches/Meeting Papers; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A