Activity-Based/Responsibility Centered Budget Model

In an activity-based/responsibility centred budget model (ABB/RCM), revenue is allocated to faculties and schools based on the revenue they generate (e.g. from grant and tuition revenue). These units are then responsible for costs associated with the academic and administrative supports required to deliver programs.  

An ABB/RCM budget model effectively aligns resources and priorities, is completely transparent, and unit leaders are empowered decision-makers managing their revenues and costs based on their specific needs.   

Other key features:  

• transparent predictable and sustainable​ 

• provides performance incentives and requires accountability​ 

• has clear and straightforward allocation methodologies