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

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Tutorial.png Unit 9 

Introduction | What is the Difference between Efficiency and Effectiveness | Efficiency | Cost-Effectiveness | Cost-Effectiveness of ODL Institutions | Making the Case for ODL

Exercise 9.4

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

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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 = cost-effectiveness ratio

ACGa = average cost per graduate for programme/institution

ACGb = average cost per graduate for programme/institution B

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

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