Abstract:

Higher education is main key of the human, science and technology and industrial development. Mongolia is developing country at the transition stage from factor to efficiency driven stage of economic development.

The quality of its higher education depends on the productivity of its people, otherwise, financing policy and its spending efficiency also depend on quality of higher education. Mongolian development strengths and weaknesses are viewed by many indicators for example, quality of education system, inadequately educated workforce, inappropriate capital spending and consumption in education and science sector. Therefore, it is necessary to consider the financial and cost factors in the development of the Mongolian higher education sector.

This paper focuses on the current situation of cost accounting systems implementations in Mongolian higher education system and on the necessary recommendations to the challenge of implementation of new approaches in modern universities. For such a purpose, we have used theoretical framework and empirical research in two cases: two different universities in Mongolia.

Keywords:

Cost accounting, activity based costing, higher education system.