An Activity-Based Costing Model For Dental Schools: Is ABC A Feasible Costing Alternative?

Abstract

Few studies related to activity-based costing (ABC) and health-care settings have investigated useful models for the health-care intellectual environment. This focus study targets one area within a dental school, the Restorative Department. The objective of the research is to determine the appropriateness of an activity-based costing system for costing departmental teaching, research and service activities by designing a comprehensive model that describes procedures associated with implementation. The results of the study indicate that there are potential benefits associated with the successful implementation of an ABC system within a health-care intellectual environment. Some of the benefits include cost savings opportunities, enhanced budgetary processes and improved assessment of the efficiency of faculty performances.