Activity-based costing in public entities: Evidences of its application at a municipal Child education center - doi: 10.4025/enfoque.v27i1.7162

Abstract

This study discussed the application of Activity-Based Costing (ABC) in the public sector. The objective ofthe study consisted of elaborating and applying a costing model based on ABC, at a Municipal ChildEducation Center (CMEI, in its Portuguese acronym). A single case study was selected as the researchmethod. First, a bibliographical survey was conducted on the subject, in order to support the empiricalresearch. Next, the practical part of the study was developed based on the literature, in order to assessthe cost of the costing objects, which were described as the 'assistance and education service' providedby the CMEI in their many classes. Based on the obtained results, the ABC costing method proved to beefficient and adequate. In addition to assessing the per-class cost of the service provided, it was also ableto identify the cost per student. Most importantly, its relevance was identified as a management tool; evenprior to the assessment the cost of costing objects, it was possible to visualize the manner in which theseresources were consumed by the activities, and consequently, the cost of these activities as well.