The applicability of activity-based costing to Employment and Training Corporation's training schemes

Abstract

Governments are continuously faced with instances which require rationalisation of funds being allocated to their agencies and departments. Within these situations, various public institutions introduced Activity-Based Costing to be able to cost their services and as a support tool for their decisions. This dissertation develops a possible Activity-Based Costing model for the costing of two training courses provided by the Employment and Training Corporation, namely the Refrigeration and Air-Conditioning course and the Office Skills course. The different steps to develop such framework are grouped into two main processes: activity analysis and cost driver analysis. The study is concluded by an analysis which indicated that the model developed is feasible to apply. Also, recommendations regarding the introduction of ABC, are made.