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Activity-Based Costing in Public Administrations: A Business Process Modeling Approach

Activity-Based Costing in Public Administrations: A Business Process Modeling Approach

Jörg Becker, Philipp Bergener, Michael Räckers
Copyright: © 2010 |Volume: 2 |Issue: 4 |Pages: 10
ISSN: 1941-627X|EISSN: 1941-6288|EISBN13: 9781613502525|DOI: 10.4018/jesma.2010100101
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MLA

Becker, Jörg, et al. "Activity-Based Costing in Public Administrations: A Business Process Modeling Approach." IJESMA vol.2, no.4 2010: pp.1-10. http://doi.org/10.4018/jesma.2010100101

APA

Becker, J., Bergener, P., & Räckers, M. (2010). Activity-Based Costing in Public Administrations: A Business Process Modeling Approach. International Journal of E-Services and Mobile Applications (IJESMA), 2(4), 1-10. http://doi.org/10.4018/jesma.2010100101

Chicago

Becker, Jörg, Philipp Bergener, and Michael Räckers. "Activity-Based Costing in Public Administrations: A Business Process Modeling Approach," International Journal of E-Services and Mobile Applications (IJESMA) 2, no.4: 1-10. http://doi.org/10.4018/jesma.2010100101

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Abstract

The traditional way of budgeting in public administrations is input-oriented; however, this system does not meet actual methods of efficient budget controlling as a mapping of output parameters. Due to challenges, such as the need for cost reduction because of decreasing tax revenues, pressure for controlling mechanisms is rising. Furthermore, Europe Pan-European directives foster process harmonization and introduction of IT-supported and optimized business processes in the public sector. In this regard, activity-based costing can be a useful instrument for efficiency measurement of public administrations output. Through the introduction of new public management and double-entry accounting public administrations, the opportunity to use cost-centered accounting mechanisms to assess process performance while evaluating their activities in a holistic concept is accomplished. Process modeling can be a useful instrument to help public administrations to capture relevant process knowledge and thus create the data basis for activity-based costing.

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