Furthermore, the universities budgeting should be able to display all the information about their profit and their losses, productivity, and the efficiency of their activities. The matter of the fact is that the budget does the opposite and as a result instead obscures the many sources of revenue such as financial aid, state funding, and expenses.(Capaldi). If the universities lack a well-informed budget, how can an institutional manager make wise decisions? To put it another way universities can’t accurately make a decision based on data that doesn’t connect performance with cost. In order for universities to be able to make more appropriate decisions, there should be a direct connection of performance related to the information from the financial reports. Although a university’s budget isn’t like a business budget that reflects the profit instead the college’s budget reflects the income and expenses. Howev...
... middle of paper ...
... success in the NCAA men’s basketball tournament. Afterwards, the college saw an increase in student applicants. Athletics and the success they bring gives colleges the opportunity to maximize profits thus resulting in tuition increases.
All in all tuition hasn’t increased over the stability of our economy. The actual reasons for this tuition increase is a result of poor budget management that doesn’t display information clearly thus creating a domino effect of one problem leading to another. Not to mention the amount of classes offered at each college can be a factor in increasing college tuition. Finally the athletic success that is made by the college has a large effect on the college especially with sports being a big source of revenue. Given these points tuition is being influenced by these three causes creating an increase in the price of higher education.
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