How to apply administrative flexibility in higher education entities through the ABC cost system?

Abstract

The method called “Costs Based in Activities” has been created to generate flexible administrative structures in the organizations, by means of the activities classification (value chain) in primary and support centres. This system allows the direct costs accumulation in every dependence responsible for developing tasks, which on the whole allow the organization to offer to its clients an ended product or an efficient service at a certain previously determined real cost. The tasks produced by a common cause are contained in pools, minimizing those factors that don't generate an added value. To implement this costs system it is necessary to carry out five stages: definition and classification of primary and support activities, definition of cost instigators, execution of primary allotment and of costs accumulation in the activity centres, execution of secondary allotment in the primary activity centres and exhibition of results of each main activity.The ABC costs system is an alternative to the flexibility use in the administration of a superior education entity, and it overcomes the problem of the sub or over-application of total costs in each activity, necessary to the service benefit.