CFOS/Efficiency and Effectiveness of ODL/Exercise 9.4
Exercise 9.4: Cost-Effectiveness Ratio
This activity is based on the same case study as used in Exercise 9.2, which focused on the Certificate in Cost Accounting programme offered by a community college in Canada. Students registering for this programme can choose to study through either conventional, face-to-face classes or paper-based distance education materials. The data for 2004 on total student enrolments, total graduates and total costs for both modes of this programme are reproduced below for ease of reference:
|Programme||Delivery Mode||Total Student Enrolments||Total Graduates||Success Rate (percent)||Total Costs (Cdn.$)||Average Costs per Student (Cdn.$)||Average Cost per Graduate (Cdn.$)|
|Cert in Cost Accounting||ODL||131||43||34,977|
|Cert in Cost Accounting||Conventional||954||886||712,433|
|Programme as a Whole||Combined||1,085||929||747,410|
- Now calculate the Success Rate and the Average Cost per Graduate for the different modes and write them down on a piece of scratch paper.
Equation for Average Cost per Graduate:
- ACg = TC ÷ TNg
- ACg = average cost per graduate
- TC = total costs for programme or institution as a whole
- TNg = total number of graduates
- Once you have finished the above, calculate the Cost-Effectiveness Ratio for the two modes of the Certificate in Cost Accounting Programme.
Equation for Cost-Effectiveness Ratio
- CER = ACGODL ÷ ACGC
- CER = cost-effectiveness ratio
- ACGODL = average cost per graduate of ODL programme/institution
- ACGC = average cost per graduate of conventional programme/institution
- In this case study, what factors have contributed to the relatively poor cost-effectiveness of the ODL mode of delivery?