Process costing: university enrollments
The university is exploring the possibility of outsourcing part or all of its enrollment function. This function involves three separate processes:
- Validation, where the new student’s secondary school results are sighted and the university’s offer of enrollment is validated.
- Student records, where the student’s study program details for the current year are entered into the student record system.
- Fees collection, where students pay their union fees and upfront course fees, if they choose to do so.
The annual costs of these three processes are:
|Cost||Validation||Student Records||Fees Collection|
|IT and other equipment insurance||10,000||25,000||20,000|
The university processes 14,000 student enrollments per year.
- Calculate the cost per student enrollment for each process. (2 Marks)
- Calculate the total cost per student enrollment. (2 Marks)
- Does the total cost per student enrollment provide a reliable estimate of the costs incurred to process each enrollment? Explain your answer. (2 Marks)
- Apart from informing its outsourcing decision, how might the university’s management use this information? (2 Marks)
- Would you recommend estimating service costs for all major student services in the university? Explain your answer. (2 Marks
Do you need help with this assignment or any other? We got you! Place your order and leave the rest to our experts.