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3,893
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The aim of this study is to expand the financial resources of the local government. Based on this aim, the study focuses on the rate system of service charges, a non-tax revenue. In order to improve the existing rate system of service charges, the study compares it with Activity-based Costing (ABC), one method of cost accounting used in the private sector, and analyzes them.
According to the results of this analysis, this study suggests the following policy alternatives: First, it is required to review the factors of accounting. Second, it is reasonable that the amount of work, namely work time, is used as the standard for appropriating the cost of labor, which holds a large portion in cost accounting. Third, the rate of reasonable costs compensating the cost recovery rate in service charges is too subjective and relies on value judgements. Therefore, standardization is required. Fourth, standardized cost accounting is needed for similar provisions. Last, the introduction of ABC in the public sector will improve the operating process of public services as well as the accurate analysis of cost accounting.
This study is meaningful for adapting to decentralization and expanding the financial resources of the local government.
