Costing review of a leading educational institution
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Client
Leading British curriculum school looking to understand staff utilization levels, and costs attributable to each activity and cost centre.
Assignment
Benefits to the client
Bottomline
We used activity-based costing (“ABC”) methodology for absorbing common costs and thereby determined profitability of each Grade, for each chargeable co-curricular activity and for each non-academic activity. The study included:
-Identifying each cost and profit centre
-Collecting extensive data on costs and classifying them appropriately
-Performing a break-even analysis for each Grade
-Computing the staff utilization level for each member of academic staff
-Highlighting all areas where costs exceeded revenue.
The Client initiated several measures to control costs without impacting quality of the school
Profitability of the school improved significantly.