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Abstract

This article examines the impact of responsibility center budgeting (RCB) on communication and theatre programs in a state supported university. While some operational differences exist, it generally can be said that, in RCB, part or all tuition and sponsored research revenues are returned to a unit in direct proportion to what is earned. The unit controls its own pricing policy and is responsible for payment of all, or nearly all, of its costs. Surpluses remain with the unit; deficits must be made up by the unit in succeeding periods. The incentive to efficient production of what the market demands is obvious. The philosophy behind the system is that there will be a centralized, coordinated university mission, which higher academic administration can oversee in cooperation with the responsibility center managers.

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