Analysis of the TCU cost indicator in the context of evaluating the efficiency of Federal Higher Education Institutions

Abstract

This article presents an analysis of the cost indicator per equivalent students, required annually by the Federal Audit Court (TCU) to evaluate the efficiency of Brazilian Federal Education Institutions (IFES). Initially, the cost indicator and its limitations are discussed, seeking to understand its usefulness and its composition, as well as, to identify possible gaps and possibilities for formulating new indicators that are more suitable for IFES management. Using the principle of ideal absorption costing as a guide, the possibility of creating cost indicators that highlight the economic values related to evasion and university retention, in addition to the cost per student, is discussed. Inconsistencies in the calculation of the indicator are also discussed, such as: the consideration of all expenses divided by the output of the teaching activity only, the lack to reveal inefficiencies different treatment between undergraduate and postgraduate courses and the absence of studies to define the weights of the courses. Improvements in the indicator can be implemented by overcoming the inconsistencies and theoretical discussions presented.