Cost and Financing in Open Schooling/Effiency and Effectiveness of ODL/ Efficiency

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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


The most common way of measuring the efficiency of an education programme, institution or system of delivery is to divide the total costs by the total number of students. This involves using the Average Costs Equation, which was introduced in Unit 2.

Average Costs Equation:

ACs = TC / TNs


ACs = average cost per student
TC = total costs for programme or institution as a whole
TNs = total number of students

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Exercise 9.1

Ideally, this exercise should be carried out with other members of staff in your own institution.

Before you begin, you will need to collect the following information:

  • total expenditure by your institution in the previous financial year, and
  • total number of students enrolled with your institution for the corresponding period.

Using this information and the average costs equation, calculate the efficiency of your institution. With your colleagues, brainstorm the limitations of this measure.

Please refer to the following Sample Answers - Exercise 9.1

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Exercise 9.2 and 9.4

Please refer to the following common link to carry out the Exercises: Efficiency and Cost-Effectiveness Ratio: Exercise 9.2 and 9.4

Please refer to common file Sample Answers for Exercises 9.2 and 9.4

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