CFOS/Unit Costs/Exercise 5.1

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Exercise 5.1 - Backflush Costing
An open school in Illinois provides courses leading to the high-school equivalency diploma (senior secondary certificate) for adults who dropped out of school early. Each course lasts one academic year and students need to successfully complete eight subject-courses in order to get their diploma. In the USA, those who obtain their high-school diploma are referred to as ‘graduates’. The table below provides the following information for a five-year period: 1. Copy the table above on a blank piece of paper;
 * total expenditure by the institution in the relevant year,
 * number of subject-courses delivered,
 * number of subject-course passes.

2. Using the Backflush Costing approach, calculate the following figures for the years 2000/01 to 2004/05:
 * unit costs per subject-course delivered,
 * number of 'graduates', and
 * unit costs per ‘graduate’;

3. Write these into the blank cells of the table.

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