Abstract
This article describes the current state of costing within the higher education sector, reviewing recent published literature and analysing the progress made by institutions in implementing activity-based costing (ABC). It draws on the findings of two cross-sectional surveys of all UK universities, undertaken in 1993 and 1998/99. The data collected suggests that while implementation of ABC systems has been slow, this might be about to change because of pressures being exerted by funding bodies and central government.