Financial Costing as an Approach to Ensuring the Sustainability of Higher Education Institutions with Varied Income Streams

Abstract

Higher education institutions are challenged by economic uncertainties, demographic shifts, and global challenges threatening the sustainability of these institutions. This paper examines various sources of income and financial costing methodologies that involve the systematic allocation of costs associated with academic programmes, administrative functions, and auxiliary services, providing a comprehensive understanding of the true costs of delivering education.

Financial costing is critical to the sustainability of higher education institutions, and it has a pivotal role in informed decision-making. Accurate cost information allows institutions to assess the profitability and viability of academic programmes, facilitating strategic choices on resource allocation and programmatic adjustments. In an era when institutions are constantly pressured to demonstrate efficiency and effectiveness, the ability to make data-driven decisions becomes paramount.

In conclusion, by adopting suitable costing methodologies, institutions can navigate financial complexities, make informed decisions, and cultivate a transparent financial environment in the ever-evolving landscape of higher education.