How Student Numbers Affect Costs

From WikiEducator
Jump to: navigation, search
Tutorial.png Unit 2 

Introduction | Review of Fixed, Variable and Semi-Variable Costs | Total Costs | Average Costs | Economies of Sale | Costs of ODL versus Conventional Education | Questions for Consideration


In the previous unit, you learned that the number of students enrolled for a particular course is a critical factor that drives several items of expenditure. This unit considers the impact of a change in student numbers on the total costs of running courses and on the average cost per student.

Icon objectives.jpg

By the end of this unit, you will be able to:

  • graphically illustrate how an increase or decrease in the number of students registered for a particular course affects fixed costs, variable costs, semi-variable costs, total costs and average costs;
  • use the Total Costs Equation and explain its significance;
  • define economies of sale and explain why they are important;
  • use the Average Costs Equation and explain its significance;
  • discuss how the costs of an ODL institution compare with those incurred for conventional, school-based education systems;
  • suggest at least three ways of reducing average costs.