Answering the Call for Accountability: An Activity and Cost Analysis Case Study

Carducci, Rozana; Kisker, Carrie B.; Chang, June C.; Schirmer, James

doi:10.1080/10668920600840665

Cited by 4 publications

(5 citation statements)

References 3 publications

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“…For this study, a test NCAA Division I FBS university was selected and its detailed, audited financial statements were downloaded from the available information on the university's website. Working ABC models applied to single cases reflects accounting literature from various industries (Arnaboldi & Lapsley, 2004;Bamber & Hughes, 2001;Brown et al, 1999;Carducci et al, 2007;Major & Hopper, 2005). To answer the first research question focused on differences in operating costs by sport between accounting methods, previously established cost drivers (Lawrence et al, 2010) were used to apply ABC to the test institution.…”

Section: Methods and Resultsmentioning

confidence: 99%

“…Applying ABC to one organization, such as the institution under study in this research, is a common method in the ABC literature (i.e., Arnaboldi & Lapsley, 2004;Bamber & Hughes, 2001;Brown et al, 1999;Carducci et al, 2007;Major & Hopper, 2005). However, it is also a recognized limitation in understanding ABC within any business segment.…”

Section: Limitations and Future Directionsmentioning

confidence: 99%

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Applying Activity-Based Costing to Intercollegiate Athletics

Lawrence

Wanless

Gabriel

2020

sij

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Current accounting methods in intercollegiate athletics make it difficult for leaders to assess and understand the true cost of each sport team operations. Institutional and athletics leaders often make decisions concerning sport sponsorship/offerings, budget allocations, overall program operations, and review Title IX compliance based on information that may not truly capture the cost of each sport. Additionally, intercollegiate athletics reform groups and the federal government are calling for athletic departments to report more consistent, accurate, and transparent financial data. The purpose of this paper is to respond to the call for accounting reform in intercollegiate athletics via an innovative application of activity-based costing (ABC) to one NCAA Football Bowl Subdivision (FBS) athletics department. ABC was applied to the athletic department budget report with results showing how previously established ABC cost drivers for intercollegiate athletics (Lawrence, Gabriel, & Tuttle, 2010) and reallocation of expenses back to specific sports allow for a greater understanding of the cost of each sport.

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Section: Methods and Resultsmentioning

confidence: 99%

Section: Limitations and Future Directionsmentioning

confidence: 99%

Applying Activity-Based Costing to Intercollegiate Athletics

Lawrence

Wanless

Gabriel

2020

sij

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“…Activity-Based Costing (ABC) was developed in response to a need in manufacturing to understand the resources consumed to produce a product (Cooper & Kaplan, 1988). Today, ABC has been applied to many different industries, including airlines (Banker & Johnston, 1993), pharmaceuticals (Jorgensen & Edwards, 1998), government (Brown, Myring, & Gard, 1999), automotive retail (Booth & Balachandran, 1999), universities (Granof, Platt, & Vaysman, 2000), e-retailing (Zeller, 2000), banking (Bamber & Hughes, 2001), financial services (Byerly, Revell, & Davis, 2003), small manufacturing firms (Needy, Nachtmann, Roztocki, Warner, & Bidanda, 2003), health care (Arnaboldi & Lapsley, 2004), telecommunications (Major & Hopper, 2005), and community colleges (Carducci, Kisker, Chang, & Schirmer, 2007). In 2007, Dimitropoulos began to explore how ABC might be applied to sport organizations and then Lawrence, Gabriel, and Tuttle (2010) provided the conceptual framework for an application of ABC in intercollegiate athletics.…”

Section: Activity-based Costingmentioning

confidence: 99%

The Impact of Intercollegiate Athletics Financial Inequalities

Lawrence

2013

Journal of Intercollegiate Sport

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Inequality within intercollegiate athletics has roots as deep as the enterprise itself. From a macro perspective, financial inequality in intercollegiate athletics stems from free-market forces influencing intercollegiate athletics, specifically the National Collegiate Athletic Association (NCAA), television broadcasting, and the Bowl Championship Series (BCS). Because the NCAA operates on behalf of its member institutions, these inequalities trickle down to all conferences, universities, and athletic programs, to specific sports, and finally to student-athletes. The goal of this paper is to respond to Zimbalist (2013), add to the conversation about financial inequality in intercollegiate athletics, and describe how national inequalities translate into inequalities on campus. An analysis of the structure of intercollegiate athletics that perpetuates these inequalities is presented, Activity-Based Costing (ABC) is introduced, and practical ideas to assist in creating a more financially equitable model of intercollegiate athletics are presented. Inequality within intercollegiate athletics has roots as deep as the enterprise itself. From a macro perspective, financial inequality in intercollegiate athletics stems from free-market forces influencing intercollegiate athletics, specifically the National Collegiate Athletic Association (NCAA), television broadcasting, and the Bowl Championship Series (BCS). Because the NCAA operates on behalf of its member institutions, these inequalities trickle down to all conferences, universities, and athletic programs, to specific sports, and finally to student-athletes. Conference executives are charged with putting their member institutions in the best possible position for success and the free market reigns, with some conferences substantially more valuable than others. The BCS operates in the best interest of the Power Conferences (SEC, Big Ten, Pac-12, Big 12, and ACC) and certainly considers the new Group of Five (Big East, Mountain West, Conference USA, MAC, and Sun Belt), resulting in a smaller group of conferences and institutions that are directly affected by their operations. But, in reality, all colleges that compete in the NCAA are indirectly affected by the BCS. As in any free market, many factors exist that affect the value of institutions and conferences, such as competitive success, geographic region, tax status, overall brand strength, history, and religious affiliation. Decision-making and priorities along the way are critical components of any discussion on college athletics finance, and this is where NCAA, conferences, BCS, Lawrence is with the

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“…Implementation of ABC in intercollegiate athletics can increase understanding of costs associated with each aspect of the athletic department as well as improving comparability and transparency. There is also an abundance of theoretical and applied research which focuses on ABC (e.g., Arnaboldi & Lapsley, 2004;Bamber & Hughes, 2001;Banker & Johnston, 1993;Booth & Balachandran, 1999;Brown, et al, 1999;Byerly et al, 2003;Carducci et al, 2007;Granof et al, 2000;Major & Hopper, 2005;Jorgensen & Edwards, 1998;Needy et al, 2003;Zeller, 2000). While ABC has been applied to many industries, including higher education, it has not yet been applied to intercollegiate athletics.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Although ABC was created to improve cost allocation processes for large manufacturing firms, it has been applied to many different industries including airline (Banker & Johnston, 1993), pharmaceuticals (Jorgensen & Edwards, 1998), government (Brown, et al, 1999), automotive retail (Booth & Balachandran, 1999), universities (Granof et al, 2000), E-retailing (Zeller, 2000), banking (Bamber & Hughes, 2001), financial services (Byerly et al, 2003), small manufacturing firms (Needy et al, 2003), healthcare (Arnaboldi & Lapsley, 2004), telecommunications (Major & Hopper, 2005) and community colleges (Carducci et al, 2007) along with many others. These applications and work by cost accounting experts have further defined ABC.…”

Section: History and Development Of Abcmentioning

confidence: 99%