CFOS/Costing a New Course or Programme/Exercise 6.2 Sample Answers

	Fixed	Variable
Non- Recurrent	Once-off Grants for course development, from: Government international funding agency NGO	Donations from private sector
Recurrent	Annual Grants Contributions-in-Kind (e.g. provision of facilities)	Student Fees Scholarships Subsidies, based on: student numbers FTE students 'graduates'

	Fixed	Variable
Non- Recurrent	Once-off costs for: Feasibility Study/Market Reserach Pilot Testing of Materials Committed Costs of staff in materials development unit Marketing Campaign to launch course	Costs than vary depending upon number of pages: Course/Script Writing Editing DTP/Layout Illustrations Audio Recording
Recurrent	Costs that arise every year or every couple of years for: Design of Publicity Brochure Design of Newspaper Ad Updating of Study Materials Provision of Study Centres (S-V) Setting Assignments Setting Examination Hiring of Exam Halls (S-V) Moderation of Exam Marking Graduation Ceremony	Costs that vary depending on learner numbers: Printing of Brochures/Flyers Placing Ads in Newspapers Printing & Packing Materials Face-to-Face Tutorials (S-V) Assignment Marking Printing/Handling of Exam Papers Ivigilation of Examinations (S-V) Marking of Exam Scripts Printing of Certificates

	Fixed	Variable
Non- Recurrent	Shared Common Costs, such as: Capital Costs of Buildings Capital Costs of Equipment Training of Tutors	Once-off payments, for example: Royalty payments for using materials from another institution Franchise payments
Recurrent	Committed Common Costs of Staff in service units: Regional/Local Offices Financial Administration Human Resources Research & Evaluation Senior Management Other Business-Sustaining Costs	Committed Costs for services to students: Data Capture & Student Records Telecommunications Postage/Courier Services Dealing with Student Queries Travel to Study Centres (S-V) Where these costs can be identified and attached to a particular course, they may be treated as Direct Costs

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