Improving the accounting of production costs and sales of products (Works, Services) in Budget Organizations: Evidence from Higher Education

This study develops an integrated framework for improving cost and sales accounting in financially autonomous higher education institutions engaged in commercial activities. Using comparative analysis, a university case study, and regulatory review, it identifies a gap between formal compliance and substantive accounting accuracy. The proposed framework includes a five-attribute cost classification, activity-based overhead allocation, performance-obligation-based revenue recognition, and integrated cost–revenue subaccounts. The model supports segment-level marginal income analysis and reveals hidden cross-subsidization of loss-making activities, thereby strengthening financial transparency and institutional sustainability.