This book offers a description of responsibility center budgeting, a management tool for fiscal and academic management at institutions of higher education, through a description of implementing this approach at Indiana University, a process that began in 1987. Responsibility center budgeting is based on three principles: (1) all costs and income attributable to each school and other academic unit should be assigned to that unit; (2) appropriate incentives should exist for each academic unit to increase income and reduce costs to further a clear set of academic priorities; and (3) all costs of other units, such as the library or student counseling, should be allocated to the academic units. The book's 11 chapters have the following titles: "When It All Started,""Principles of Responsibility Center Budgeting,""Defining Responsibility Centers,""Attribution of Income,""Allocation of Costs to Responsibility Centers,""Determining