IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/964.html
   My bibliography  Save this paper

Cost system design and cost management in the Spanish public sector

Author

Abstract

Cost systems have been shown to have developed considerably in recent years and activity-based costing (ABC) has been shown to be a contribution to cost management, particularly in service businesses. The public sector is composed to a very great extent of service functions, yet considerably less has been reported of the use of ABC to support cost management in this sector. In Spain, cost systems are essential for city councils as they are obliged to calculate the cost of the services subject to taxation (eg. waste collection, etc). City councils must have a cost system in place to calculate the cost of services, as they are legally required not to ‘profit’, from these services. This paper examines the development of systems to support cost management in the Spanish Public Sector. Through semi-structured interviews with 28 subjects within one City Council it contains a case study of cost management. The paper contains extracts from interviews and a number of factors are identified which contribute to the successful development of the cost management system. Following the case study a number of other City Councils were identified where activity-based techniques had either failed or stalled. Based on the factors identified in the single case study a further enquiry is reported. The paper includes a summary using statistical analysis which draws attention to change management, funding and political incentives as factors which had an influence on system success or failure.

Suggested Citation

  • Josep Lluís Boned & Llorenç Bagur & Mike Tayles, 2006. "Cost system design and cost management in the Spanish public sector," Economics Working Papers 964, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:964
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/964.pdf
    File Function: Whole Paper
    Download Restriction: no

    More about this item

    Keywords

    Cost system; management accounting; activity based costing; public sector;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:964. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.econ.upf.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.