A Case Study of Adopting an Activity-Based Cost Management Model at a Community College

• In Event: Perspectives on Community Colleges

Abstract

This paper discusses the key findings from a 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, its usefulness, and its potential to improve institutional functioning. The study also looks at the first-year implementation successes and challenges. Findings indicate that key stakeholders believe the ABC model has potential to increase efficiency by providing more granular cost allocation data, but full implementation will hinge on a campus-wide understanding of the model’s benefits and a cultural shift surrounding how institutional costs are discussed.

Authors

• Kristina Buenvenida Tirol-Carmody, The University of Kansas

• Nadzeya Kardash, The University of Kansas