CFOS Unit 9/Efficiency and Cost Effectiveness Ratio

EXERCISE 9.2 and 9.4: Efficiency and Cost-Effectiveness Ratios
A community college in Canada offers its programmes through both conventional, face-to-face classes and paper-based distance education materials. Information for 2004 on total student enrolments, total graduates and total costs for both modes in relation to the Certificate in Cost Accounting programme are given in the table below:

EQUATION

ER =  ACa ÷  ACb

Where:
 * ER 	=	efficiency ratio
 * ACa 	=	average cost per FTE student for programme/institution A
 * ACb 	=	average cost per FTE student for programme/institution B

EQUATION for Cost-Effectiveness Ratio


 * CER =  ACGa ÷  ACGb

Where:


 * CER = cost-effectiveness ratio
 * ACGa	= average cost per graduate for programme/institution A
 * ACG b = average cost per graduate for programme/institution B

In this case study, what factors have influenced the relatively poor cost-effectiveness of the ODL mode of delivery?

Please refer to the Sample Answers for Exercices 9.2 and 9.4 by clicking on the link.

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