How Student Numbers Affect Costs

Introduction

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.

Objectives

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.