ACTIVITY BASED BUDGETING

This study addresses review and design of an activity based budgeting (ABB) system for budgeting and offering information for decision making in Universities and Higher Education Institutes. The proposed model was designed and implemented through three stages. First, data was collected via observation, interview and questionnaire. Second, the main activities of Shiraz University was recognized and defined, considering foreign studies in the U.S., the UK, Australian universities and Shiraz University’s conditions, using its organizational chart. After collecting the needed budget information, the activity bases were recognized and defined. To choose proper basis, causal method, similar foreign and domestic studies, observation of practical works and interviews with managers, were used. During the third stage, budget amounts were allocated to the activities using recognized factors. The fourth stage was to recognize the proper factors and bases for budget allocation to the different colleges. After recognition of proper factors, budget amounts were allocated to the colleges. The Most important findings of this study are preparing the probability of managerʹs participation in budgeting, providing necessary drivers and proper bases for budget allocation to the different colleges, determining educational, research, students and other activitiesʹ portion in allocated budget and providing a proper strategy for budget allocation to different colleges, helping to managers’ decision making and finally preparing budgets based on activities at Shiraz University.