Cost of Higher Education

[Abstract] article from the concept of the cost of Higher Education to the constraints of the existing financial accounting system, the main principles of Cost Accounting, Cost Accounting scope, Cost Accounting procedures for the design, calculation of the cost of Education Cost Accounting are discussed.

[Keywords:] colleges and universities; Education costs; Cost

First, the concept of the cost of Higher Education

Higher Education costs, is used in the Educational activities of University students spent the value of Educational resources, which includes general Education, education costs and the cost of two narrow meaning. Generalized cost of Higher Education both in money expenditure of educational resources value, but also because of resource for Higher Education caused by the loss of value. narrow the cost of higher education for college students is spent, can be measured in monetary value of educational resources, not including the loss of resources for higher education opportunity cost. generalized cost of education does not apply to college students to develop micro-costing of the measurement of the cost, colleges should learn from the concept of enterprise production costs, from an accounting point of view to define the cost of higher education, namely, the cost of higher education cost for the training of college students that can be reliably measured in monetary cost of educational resources.


Second, the existing financial accounting system, the constraints on the Higher Education Cost

(A) of the cash basis of accounting based on the constraints of Cost Accounting
In addition to the provisions of Accounting systems business, operating income, the general cash basis, the increase or decrease in money funds directly to determine the income and expenditure of funds without regard to the acquisition and payment of the vesting period, the income and expenditure does not require ratio. The cash basis of accounting-based model does not reflect the cost of investment in education and education on the causal relationship between the matching principle and time, resulting in the cost of higher education have a significant impact factors (depreciation of fixed assets investment in infrastructure, Research fees, etc.) can not reasonably enter the costing range. For example, the acquisition or construction of fixed assets investment fee is a one-time costs, will increase current year expenditure, the balance to reduce the future benefits are not assessed each year, income is not matching, making accounting information can not truly reflect the original appearance of economic business.

Accrual basis, based on current amounts due as a standard to determine the benefits and costs, where a current income and expenses, whether received or paid, are treated as current income and expense processing; who do not belong to the of revenues and expenses, even though they have received or paid, are not as current income and expenses. emphasized that the matching principle of accrual in the calculation of profit or loss, you need to get income accounting and related costs, depreciation and to be involved Many cost-sharing calculations.

Clearly, the two accounting basis compared to the accrual to more truly reflect the financial position of a unit, accurately identify and measure the accounting period in which the revenue and costs incurred cost, is more suitable for the cost of higher education accounting.

(B) Higher cost accounting methods, accounting content, imputation methods did not clearly defined
Cost Accounting Standards for Enterprises made it clear that the existing accounting standards and institutions only institution set forth requirements for financial accounting, cost accounting did not mention the contents of the relevant institutions, while the cost collector and accounting, has also not clear normative standards. many colleges and universities in accordance with the daily operation to calculate the cost of education funding, in fact, is unreasonable. to school education cost the actual expenditures, in fact, should not contain a considerable portion of the cost allocated to the students. such a huge logistical Expenditure on social security and some Research expenses. However, what college costs and operating expense should be included in the cost, which is not included, the cost included in cost of how much concrete, how to calculate the cost of education should be, the State has not made uniform provisions, no Accounting options for the introduction of the corresponding National Development and Reform Commission promulgated .2005 <<cost of going to higher education and training (trial)>> Although the cost of higher education into the scope of government regulation, but the mean cost, strictly stresses is a statistical cost accounting procedures and not through out the accounting cost accounting, the cost of information, objectivity, accuracy and authority of the accounting cost far less.


Third, the education cost accounting principles

Cost of Higher Education present the basic ideas can be grouped into two types, one is to follow the existing system of institutions and schools under the premise of the dual system of accounting; the other is to modify accounting standards institutions and universities accounting system, the use of accrual production of single-track basis for the accounting system. but to modify the accounting principles and institutions and universities accounting system, accounting system related to the reform of the national budget, more involved level, reform is difficult, so I believe that college education should be based on the existing cost accounting based on accounting data, to meet the national budget management and financial institutions to follow current guidelines and the premise of the school accounting system, drawing on ideas and methods of corporate cost accounting, accounting information of existing appropriate adjustments and conversions. The main principles are as follows :
(A) amend the existing cash basis of accounting principles
Reference to the principle of accrual to the existing accounting information based on the existing cash basis of accounting the results of appropriate amendments.

(B) the principle of relevance
Distinguish between the costs associated with education cost accounting, all costs associated with the students into the education cost accounting for the scope, and students can not be included in the cost of related educational costs.

(C) of the distinction between revenue expenditure and capital expenditure of the principles of
Revenue expenditure is incurred to obtain current revenue expenditure should be recorded as current expenses; capital expenditures made for the current and future means more than the expenditure incurred on the income, the accounting treatment will be capitalized as assets accounting. drawn between revenue expenditure and capital expenditure requirements in the accounting principle should be correctly distinguish between expenditures should be included in the current costs, which expenditures can not be included in the current cost of a reasonable share of the cost of the current period.

(D) operational principles
Costs for some students to develop relationships with the expenditure is difficult to define, the principle should be followed to determine whether to include operational costs and cost-sharing ratio.


Fourth, the scope of Education Cost

(A) the cost of higher education should include personnel costs, goods and services expenses, the apportionment of capital expenditures
Personnel expenditure is paid to teaching and providing services for the teaching staff of the various service personnel costs, including salaries, allowances and subsidies, bonuses, medical expenses, housing provident fund, housing subsidies, as well as the serving officers of various social insurance payments fees, including payment of scholarships to students part. Goods and services expenditure is the school teaching and related matters for the purchase of goods and services expenditures, including office supplies, utilities, telecommunications fees, travel expenses, and its content with the current subjects in government revenue and expenditure categories consistent economic classification of subjects. apportionment of capital expenditures: Capital expenditures is the university to acquire fixed assets, intangible assets and other long-term expenses, including acquisition or construction of various types of housing, buildings, machinery and equipment , instruments and so on. the school a one-time investment, a number of years in the future to benefit the long term, the cost can be fully credited, but in the cost period, the shall be apportioned reasonably included in cost.

(B) the expenditure should not be included in the cost of education
Run enterprise spending, non-independent accounting units of various school operating expenditures, the expenditure of various subsidiary units turned over to higher spending, gold has been retired retirees, university compensation, donation, casualty losses and other non-normal sexual students spending etc, nothing to do, should not be included in the cost of education.

(C) should not be charged the full cost of education spending
1. Research expenditures. University Research spending from the relationship with the students and the students can be divided into spending on scientific Research and independent research with students spending. Higher education reform for the establishment of research projects have taken place in schools of education reform expenditures directly related to the training and students, should be fully included in the cost of higher education; universities to encourage and support scientific research, carried out relevant research projects and awards supporting the funding should be considered as expenditure incurred by the school as a direct contribution to society should also be included in the cost of higher education; universities to undertake vertical and horizontal subject expenditures incurred, because each topic has a corresponding source of research funds, and individual issues can be balanced, but this research with students not directly related to culture, it is not included in the cost of education.

2. Logistical expenses. Rear logistics sector expenditures are to provide logistical support to the students and staff services necessary expenses. Conducts the education cost accounting process, should follow the related principles that have been spun off from school, set up the logistics group of independent accounting expenditure incurred or economic entity should not be included in the cost of education, the school paid to these units allow the costs associated with the students included in the cost of education, such as water and electricity students, campus greening, house maintenance. failure to implement the logistics of the university community logistics expenditures and student-related costs should be included in the cost of education, but the costs are paid should not be included in the service of education costs.

3. Award grants expenditures. Does not include student loans obtained from banks and the unit or individual donations, sponsorship, established a special scholarship, because such funds belong to the social capital, the source of great uncertainty. In addition two scholarship outside the ordinary items, price subsidies, difficulties in subsidies and other forms of work-study scholarships should be included in the cost. reposted elsewhere in the Research Papers Download http://www.hi138.com V. Program Design Education Cost

(A) establish a project cost of education
The cost of the project cost can be divided into teaching, business auxiliary costs, administrative costs, logistics costs, the cost of student affairs, general research costs, other costs seven. teaching costs: refers to all types of teaching units to train students in the teaching process various costs, including personnel costs of teaching staff, teaching the public sector expenditure, depreciation of fixed assets and other teaching. business auxiliary cost: refers to the university library, computer center, network center, audio-visual center and other academic support departments to support teaching occurred various expenses, including personnel costs, public expenditure, fixed assets depreciation. administrative costs: refers to the administrative department of University administrative tasks in order to complete various types of expenses incurred, including personnel costs, public expenditure, depreciation of fixed assets and so on. logistics costs: refers to the university to provide logistical support various types of expenses incurred, including personnel costs, public expenditure, fixed asset depreciation. Student Affairs cost: refers to the university directly for student affairs, including student scholarships, students at public expense various types of medical expenses, including expenses. In general many of the students in matters of housing, equipment and administration but also inseparable, for ease of operation, this type of housing, equipment depreciation costs can be included in the administration, not students Service cost sharing. conventional research costs: refer to college students about the scientific research and training expenses, including the sharing of personnel expenditure, public expenditure, fixed asset depreciation. Other costs: that is not in the project with the students to develop other related expenses.

(B) the classification of cost objects
The calculation of the cost of higher education college and educate various types of objects are students. Many different types of college students have different academic levels, and the same and there are different educational levels in the professional, the same professional, he also divided into different grades. In order to facilitate imputation and allocation of costs, according to education levels, professional and senior categories. by level of education can be divided into junior college students, undergraduate, graduate and doctoral four categories; by Specialty classified in accordance with the basis of academic levels , and then divided the students professional; by grade point refers to the above two categories, based on student grades by then.

(C) determine the cost of
Cost of the object is determined by cost accounting, reporting the cost of education cycle. From the requirements of proper accounting of the cost of looking to the natural business cycle costing more appropriate period. Higher education products for students can be put in students as "the product", graduates at all levels as a "finished product", in theory, should be graduates of the training cycle at all levels of cost accounting as an educational cycle. here said culture period is from the object into the school to train graduation time. but a student's training period varies from four to five years more than two years is not easy to provide relevant and timely cost information, the cost of education should be "years" division. As the school teaching is organized by school year , the tuition fee is charged by school year, the "year" should be a more appropriate school year. This fiscal year, although the requirements of inconsistency, but the school can generate reports on a monthly basis, January to December of the calendar year to meet the macro statements management requirements, according to the year in August to generate cost report in July next year, can truly reflect the cost of University education to meet the needs of cost management.


Sixth, the calculation of the cost of education

Based on the above cost accounting ideas, current accounts and university accounting methods remain unchanged. Higher Cost can be an additional auxiliary Zhang Tao, and design appropriate cost accounting courses, business registration and business Zhang Tao University of parallel registration. Costing Subject may be set above the main cost items of seven subjects general ledger, while an additional "cost of higher education" subjects, the subjects debit reflect "the cost of teaching", "business auxiliary cost" and "administrative costs", "logistics costs", "the cost of student affairs," "the cost of conventional scientific research", "other costs" into the number of subjects, the number of transferred credit reflected the end of the period. because a lot of college costs are indirect costs, direct costs are relatively small, regardless of direct costs can be and indirect costs of setting a breakdown of direct costs are included, through the allocation of indirect costs are included. and a breakdown of cost objects can be set, and a breakdown of expenditure within the economy and then set the column content. According to double entry bookkeeping principles, but also set the "cash", "depreciation of fixed assets" and "cost-related income" subject. "cash" account is a broad accounting of cash, including cash, bank deposits and other monetary funds, usually only reduce the number of registration, before the end under the "cost related income, "added the registration number." depreciation of fixed assets "subject is the use of fixed assets, cost allocation of subjects, the business occurs, based on cost alone, debit" × × cost "subjects, credited" depreciation of fixed assets. " Depreciation of fixed assets is a college course credit balance of accumulated depreciation of fixed assets, is the cause of Zhang Tao college credit courses in the fixed assets, fixed assets management for Colleges and Universities have some reference value. "cost-related income" subject is carried forward in the final used when the cost of higher education courses, carry-over cost of higher education, credited "the cost of higher education", according to the same amount, debit "cost-related income", but also by the same amount, debit "cash" credited to "cost-related income."
University accounting treatment in daily, according to the preparation of accounting documents of the original certificate by cost alone, the cost allocated costs associated with a single, standard distribution can have a variety of options, such as the proportion according to class, credit ratio, the proportion of staff salaries, the actual proportion of students, the standard number of students (about when the coefficient of conversion by the number of students after) the proportion of other standards for distribution, about when the coefficient of education authorities can refer students to the required standards equivalent coefficient. allocation method can be used the actual distribution rate method can also be used program distribution rate method, the former is to be based on current actual allocation and distribution of the actual calculation of the standard calculation of the actual total distribution rate, which is based on current plans for the current distribution rate actual allocations should be distributed approach, which plans to determine the distribution rate based on historical experience. by which method, according to the actual situation of the university, according to the principles of relevance and to determine operability. cost sheets in addition should have costs related to content, generally also have the corresponding business spending occurs in the cause of Zhang Tao registered in universities in the number of accounting documents, easy to find and review.

Imputation and allocation by cost, the various costs associated with the object included in the cost related to cost items, which can be obtained during the period cost the total cost. Objects in the cost of education before graduation, the cost of all the costs are not completed , the object in the cost of education graduates, all costs are the costs of completion, with the cost of the object divided by the total cost to complete the total number of cost objects, that is, unit costs of completion, the same can also calculate the total cost per year and unit costs.


[References]
[1] Financial Management of Normal University Research Team. Higher Teachers Training College student cost of [J]. Education Accounting Research, 2005 (4) :3-21.

[2] Weide Hong, Wang Shanshan. University Student Training Cost method [J]. Accounting Communications (Academic Edition), 2008 (1) :43-46.

Links to Research Papers Download http://www.hi138.com