Education Cost of Dental Students Using the Activity-Based Costing Method at Iran University of Medical Sciences

Accurate cost and pricing information is essential for optimal budget allocation and sound strategic decision-making. Establishing an appropriate costing system is critical for understanding educational expenses, improving services, and managing budgets more efficiently. This study aimed to estimate the cost of educating students at the dental school during the 2022-23 academic year.

This cross-sectional study estimated the cost of educating dental students at Iran University of Medical Sciences in 2023 using the Activity-Based Costing (ABC) method. Data were collected through interviews with financial and administrative officials, as well as relevant units such as accounting and administration, utilizing a structured checklist. After estimating the costs of activity centers, overhead and intermediate center expenses were allocated to final activity centers based on suitable allocation bases. Ultimately, the costs associated with the final activity centers which is, the educational departments, were determined, and the total cost per student was calculated.

The average cost of educating a general dentistry student in the 2022-23 academic year was approximately 132,438 Purchasing Power Parity (PPP) adjusted US Dollars. In the dental school, total overhead costs amounted to 802,953, while total direct costs were 1,133,853 in PPP-adjusted dollars. The largest portion of total costs (61%) was attributed to human resources, followed by consumables (20%) and equipment depreciation (14%).

The majority of costs are allocated to human resources, indicating the need to enhance productivity. Reducing consumable costs and equipment depreciation could further improve financial efficiency. It is recommended that managers and policymakers implement strategies to optimize resources and enhance educational quality.