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Information Needs in Higher Education Institutions: Stock Valuation or Decision-Making?
Paulo Alexandre Monteiro Gouveia Sanches1, Belén Fernández-Feijoo Souto2, Susana Gago-Rodríguez3
1Coimbra Business School, ISCAC, Polytechnic Institute of Coimbra, Coimbra, Portugal.
Higher education institutions often use full costing systems, but this method is inadequate for their managerial decision-making needs. The study suggests shifting towards more effective partial costing systems for better financial insights.
Area of Science:
- Management Accounting
- Higher Education Finance
Background:
- Higher education institutions commonly adopt full costing systems.
- Adoption is driven by formal agents (governments, funding bodies) and informal agents (associations).
Purpose of the Study:
- To analyze the consistency of the rationale behind full costing adoption in higher education.
- To evaluate the theoretical basis of full costing versus direct/variable costing systems in this context.
Main Methods:
- Literature review of management accounting models in higher education.
- Analysis of the link between accounting information outcomes and decision-making.
Main Results:
- A significant gap exists between theoretical statements and the actual information needs of higher education institutions.
- Full costing systems are often inadequate for managerial decision-making in academia, unlike in other industries.
Conclusions:
- Current practices of using full costing systems in higher education should be critically reviewed.
- A shift towards more effective partial costing systems is recommended for improved managerial accounting.
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