In these days of radical contraction of funding and expansion in student numbers, universities are under pressure to prioritise their resources, as well as to achieve effective costing and pricing to support judgement and decision making for funding and any external work undertaken. This study reviews costing, pricing and income measurement in higher education institutions in the UK supported by a case study on resources management in a higher education (HE) institution in the south of England. The institution's resource allocation model--ICE model (income, costing exercise model)--was analysed based on relevant data obtained from institutional documentation, personal interviews and case studies, to understand how it guides resource allocation to academic schools in relation to business plans. The study, which focuses on two model schools in science and technology, and business disciplines, respectively, show that ICE model, as used for resource allocation, is based mainly on set targets and appears to ignore business plans that provide a more accurate record of income and expenditure over an academic year. Resource allocation formulae, therefore, could be less transparent, with implications for survival and economic viability of academic schools. (Contains 6 tables and 2 figures.)