Assessing the Cost Information Usage at Higher Education Institutions - Case Study in Croatia and Bosnia and Herzegovina

Abstract

In order to improve the planning process, calculation, allocation, and cost control at higher education institutions, it is necessary to keep track of costs, not only by the nature and places of costs but also by different programs and types of services. Since the information and data are the most important resources in the process of managing, the deployment of an adequate financial information system is the assumption in assurance of better governing with higher education institutions. Assuming that the appropriate accounting information system infrastructure is a support of the successful management, its content and structure should be seen as a function of increasing efficiency of financial management and evaluation of management in higher education institutions, not only during the execution of the objectives of the budget. The purpose of this paper is to show the current usage of cost information at higher education institutions in Croatia and Bosnia and Herzegovina through empirical research and to investigate the opinions of accountants and financial officers regarding the possible implementation of cost accounting methodology at higher education institutions. The paper is analyzing the accounting system in Croatia and Bosnia and Herzegovina at higher education systems, providing the information about the negative sides of the current accounting system for the recording and allocation of costs. A theoretical background about the usage of accrual accounting basis and cost accounting methodologies at higher education systems of different European countries is showing better governance and financial sustainability of higher education institutions that have already introduced cost accounting methodology. The empirical research is pointing out the difference in the observed two countries. The difference is visible through accounting systems, usage of cost information, and usage of cost allocation methods for calculating costs per student.