​"Divisions" of a University

question 85

Essay

​"Divisions" of a University
The separate colleges within universities are often operated as profit centers.While a student takes courses throughout the university,the budget of a specific dean is based on the students it serves.Two models are 1)basing funds on the number of student hours generated by a college and 2)basing funds on the number of students completing majors within the college.How do these two models affect the incentives for which courses included in the degree programs?

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Definitions:

Exchange Rates

The price of one country's currency in terms of another's, influencing international trade and investment.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, most often used in measuring its financial performance and position.

Capital Assets

Long-term assets acquired or owned by a company, used in its operations and not expected to be converted into cash within a year.