Activity-based costing in the public sector and non-profit organisations: towards risk-based approach Online publication date: Fri, 04-Feb-2022
by Bakhtiar Ostadi; Reza Zare
International Journal of Productivity and Quality Management (IJPQM), Vol. 35, No. 1, 2022
Abstract: Each organisation is looking for ways and pricing mechanism to reduce their costs; it is essential to use modern ways to manage them. The aim of this paper is to calculate the cost of public sector services held by non-profit training centres and institutions, using activity-based costing (ABC) method according to risk-based approach. It considers cost of risk factors associated with the process. Firstly, the risk factors are identified. Secondly, potential risk factors that were identified are prioritised using failure mode and effects analysis (FMEA) method and with expert opinions. Then, the cost of activity centres is calculated considering the risks. The identified costs have been allocated to activity centres before and after the allocation of risks. The research findings are experimented in a non-profit training centre and institution with one-day training course and 25 participants. The results indicate that there are critical risks in the service delivery process which can affect the costs.
Online publication date: Fri, 04-Feb-2022
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Productivity and Quality Management (IJPQM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com