Guidelines for Calculating Educational Costs for Administrator’s Decision Making : The case study of Maejo University

Abstract

The research topic " Guidelines for Calculating Educational Costs for Administrator’s Decision Making: The case study of Maejo University aims to investigate the cost calculation methodology of education for decision-making by the administrators of Maejo University, and to establish criteria for cost calculation methodology of education for decision-making by the administrators of Mae Jo University. The researchers collected data by using in-depth interviewsof the university faculty administrators, financial, and accounting experts. The study found that the cost calculation methodology of education for decision-making by the administrators of Maejo University comprises of: 1. calculating the cost per student, 2. analyzing the break-even point, 3. analyzing the cost-effectiveness, and 4. analyzing the financial aspects. The criteria for cost calculation methodology of education for decision-making by the administrators of Mae Jo University are as follows: 1. in calculating the cost per student, the actual expenditure data of the faculty will be used, including the budget revenue and the state budget, excluding the personnel budget and the central expenditure from the university. The direct expenses and shared expenses will be separated and both methods of per student and FTES will be used to
calculate the cost per student, and 2. analyzing the break-even point will be done by using the formula for the break-even point, which includes fixed costs comprising of both state budget and budget revenue, and variable costs comprising of salaries, consumables, project support funds, investment expenditures, and other expenses 3. value assessment of the curriculum includes dimensions of efficiency, considering the calculation of cost per head, calculation of break-even point,
and number of students who have completed the program. The dimension of effectiveness is evaluated based on employment status, user satisfaction with graduates, and satisfaction with the curriculum. The impact dimension is evaluated based on the effects and opportunities of competition. 4. Financial analysis includes analyzing the liquidity ratio, efficiency ratio in asset utilization, evaluating financial risks, and assessing the ability to manage expenses.