Student Enrollment

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
Staff salaries $60,000 $40,000 $35,000
IT and other equipment insurance 10,000 25,000 20,000
Equipment insurance 1,000 2,100 2,000
Telephone 1,100 3,300 2,000
Data processing 6,300 20,000 5,200
Postage 0 1,000 6,500
Consumables 3,000 35,000 9,000
Electricity 1,200 2,400 2,200

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.

Quality Guaranteed

Any Deadline

No Plagiarism