What do we need to account for?

We have already discussed a variety of different costs that are incurred by open schools. This section consolidates what was presented previously and applies these concepts in a real-life situation.

Activity

Exercise 6.2 Types of Income and Expenditure in Course Development This exercise can be done either on your own, with a partner or in a small group. If you still have the list you drew up for the exercises in Unit 1, take this out. If not, take a few minutes to jot down all the items of income and expenditure that you can think of in relation to the development of a new course. Take out three blank sheets of paper and copy the table below on each of them. Label the first sheet with the heading INCOME and write down all possible sources of income in the appropriate cells of the table. Label the second sheet with the heading DIRECT COSTS and group these under the appropriate headings in the table. Label the last sheet INDIRECT COSTS and write down all the different types of expenditure you can think of in the appropriate cells.

	____Fixed____	___Variable___
Non- Recurrent
Recurrent

Feedback: Please refer to the Exercise 6.2 - Sample Answers for some examples of the different costs associated with the development of a new course.

Activity

Exercise 6.3 Estimating Income and Expenditure on Course Development Open a copy of the file Course Development Template Click on the Other Income tab and experiment by entering different amounts in the highlighted cells. Click on the Student Fees tab and experiment with different values in the highlighted cells. Look at the other worksheets in this file and play around with different combinations. This template may be used in future when you need to make a projection of income and expenditure for a new course. Provision has been made for estimating the impact of inflation on costs and fees over the life of the course. If a particular item or cell is not relevant, leave it blank or enter a zero.