Responsibility-Centered Management (RCM): Friend or Foe?

24 Pages Posted: 19 Jul 2017

See all articles by Marvin Bouillon

Marvin Bouillon

University of Southern Mississippi

Clemense Ehoff

Central Washington University

Ronald Tidd

Central Washington University

Date Written: July 6, 2017

Abstract

RCM has become a popular choice among college and university presidents as they seek ways to allocate tighter budgets. The direct linking of tuition revenue with student credit hours has been looked upon favorably due to its simplistic and objective approach to revenue allocation. In this paper, we use a simple numerical example to measure RCM budgets assuming revenues are assigned to colleges based on various levels of student credit hours and majors. We found that the college with the largest increase (decrease) in budget from assigning revenues based on student credit hours would have a huge decrease (increase) when revenues are assigned using majors.

Keywords: Responsibility-centered, RCM, Budgeting

JEL Classification: H72, H83, I23, L38, L88, M48

Suggested Citation

Bouillon, Marvin and Ehoff, Clemense and Tidd, Ronald, Responsibility-Centered Management (RCM): Friend or Foe? (July 6, 2017). Journal of Accounting, Ethics and Public Policy, Vol. 18, No. 2, 2017, Available at SSRN: https://ssrn.com/abstract=2998333

Marvin Bouillon (Contact Author)

University of Southern Mississippi ( email )

118 College Drive, #5178
Hattiesburg, MS 39406-0001
United States
6012665574 (Phone)

Clemense Ehoff

Central Washington University ( email )

400 E. University Way
Ellensburg, WA 98926
United States

Ronald Tidd

Central Washington University ( email )

400 E. University Way
Ellensburg, WA 98926
United States

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