# CFOS Unit 9/CFOS Unit 9/Efficiency and Cost Effectiveness Ratio

## Efficiency and Cost-Effectiveness Ratio

 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

Activity
 Exercise 9.2 Now calculate the Success Rate and the Average Cost per Graduate for the different modes and insert your answers in the blank cells of the table above. Once you have finished the above, calculate the Cost-Effectiveness Ratios for the two modes of the Certificate in Cost Accounting Programme. The equation is the same as for the Efficiency Ratio above, but utilises Average Cost per Graduate.

EQUATION for Cost-Effectiveness Ratio

CER = ACGa ÷ ACGb

Where:

CER = cost-effectiveness ratio

ACGa = average cost per graduate for programme/institution

ACGb = average cost per graduate for programme/institution B

# Competencies

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