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ERIC Number: ED445620
Record Type: Non-Journal
Publication Date: 1999
Pages: 37
Abstractor: N/A
Reference Count: N/A
A Primer on Responsibility Centre Budgeting and Responsibility Centre Management. Professional File, Winter 1999, Number 17.
Lang, Daniel W.
This monograph is a "how-to" manual on responsibility center budgeting (RCB) and responsibility center management (RCM) in the context of Canadian and U.S. institutions. It explains how RCB/RCM works in practice and discusses some of the problems encountered in implementing this strategy at a number of Canadian and U.S. universities. The paper reviews the basic elements of RCB/RCM, which includes the calculation of all revenue generated by an academic unit, recalibrated periodically to ensure the reliability of cost information; the advantages of RCB/RCM in exposing costs that are often known but not recognized; the problems and disadvantages of RCB/RCM, including an institution's assumption that it has more knowledge of costs than it actually does have; how to install and costs of RCB/RCM, noting the need for a long-term commitment to the principles of RCB/RCM and a long-term understanding of markets and program costs; and the relationship of RCB/RCM to institutional plans and mission statements. In concluding the paper some RCB/RCM do's and don'ts are offered, along with a brief discussion of the future of RCB/RCM. A series of charts on central overhead model methodology, as well as financial worksheets are included. (Contains 36 book/journal references and 23 institutional reports on RCB/RCM.) (CH)
Canadian Society for the Study of Higher Education, University of Manitoba, 220 Sinnot Building, 70 Dysart Road, Winnepeg, Manitoba R3T 2N2, Canada.
Publication Type: Opinion Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Canadian Society for the Study of Higher Education.
Identifiers - Location: Canada