Abstract
Background: Estimating the total cost of services is crucial for utilizing available resources more efficiently and effectively. By employing the time-driven activity-based costing (TDABC) method, not only can costs be calculated, but also the efficiency and unused capacity of resources can be assessed. Objectives: This study aimed to calculate the cost of education for each medical student at one of the AJA Medical sciences Universities in 2022 using the TDABC method. Methods: This quantitative study was conducted cross-sectionally and retrospectively in a descriptive-analytical manner. The data were collected and analyzed through interviews and observations. To analyze and allocate costs, administrative and educational departments were categorized into three levels: Overhead, intermediate, and final activity centers. Then, using the TDABC approach in Microsoft Excel 2013 software costs from the overhead and intermediate activity centers to the final activity center and students. Results: The study estimated the average cost of educating each medical student to be approximately IRR 6 267 568 065. Additionally, the unused capacity of resources in overhead and intermediate centers was observed to be 30% (range: 4 - 44%) and 33% (range: 26 - 43%), respectively. Conclusions: The findings indicated that the cost per student is somewhat reasonable; however, there is a high level of unused capacity in the university and faculty activity centers. The effective management of human resources and equipment is necessary to enhance service delivery processes, increase productivity, and reduce unused capacity.