Reflections on costing, pricing and income measurement.pdfVIP

Journal of Higher Education Policy and Management Vol. 31, No. 2, May 2009, 133–147 Journal of Higher Education Policy and Management, Vol. 31, No. 2, March 2009: pp. 1–23Journal of Higher Education Policy and ManagementCJHE1360-080X1469-9508 Reflections on costing, pricing and income measurement at UK higher education institutions Journal of Higher Education Policy and ManagementC.F. Oduoza Chike F. Oduoza* School of Engineering and Built Environment, University of Wolverhampton, Wolverhampton, United Kingdom In these days of radical contraction of funding and expansion in student numbers, universities are under pressure to prioritise their resources, as well as to achieve effect- ive costing and pricing to support judgement and decision making for funding and any external work undertaken. This study reviews costing, pricing and income measure- ment in higher education institutions in the UK supported by a case study on resources management in a higher education (HE) institution in the south of England. The insti- tution’s resource allocation model – ICE model (income, costing exercise model) – was analysed based on relevant data obtained from institutional documentation, per- sonal interviews and case studies, to understand how it guides resource allocation to academic schools in relation to business plans. The study, which focuses on two model schools in science and technology, and business disciplines, respectively, show that ICE model, as used for resource allocation, is based mainly on set targets and appears to ignore business plans that provide a more accurate record of income and expenditure over an academic year. Resource allocation formulae, therefore, could be less transpar- ent, with implications for survival and economic viab