Question
A university monitors its faculty salaries, administrative costs, and facility maintenance expenses over five semesters. Semester Students Enrolled Faculty Salaries Cost per Student (Faculty) Administrative
A university monitors its faculty salaries, administrative costs, and facility maintenance expenses over five semesters.
| Semester | Students Enrolled | Faculty Salaries | Cost per Student (Faculty) | Administrative Costs | Cost per Student (Admin) | Maintenance Costs | Cost per Student (Maintenance) |
|---|---|---|---|---|---|---|---|
| 1 | 500 | $100,000 | $50,000 | $30,000 | |||
| 2 | 1,000 | $100,000 | $60,000 | $50,000 | |||
| 3 | 250 | $100,000 | $30,000 | $20,000 | |||
| 4 | 750 | $100,000 | $55,000 | $45,000 | |||
| 5 | 1,250 | $100,000 | $65,000 | $60,000 |
Required: a. Determine the cost per student for each cost. b. Classify each cost as fixed, variable, or mixed. c. Analyze how understanding these cost behaviors can aid in tuition setting. d. Discuss the implications of these costs for university financial planning. e. Recommend strategies to optimize faculty salaries, administrative, and maintenance costs.
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
12th edition
132552620, 978-0132552622
