The cost analysis of distance teaching. Costa Rica's Universidad Estatal a Distancia

Any cost analysis begins by identifying the main cost-inducing variables in the system under consideration. Once these are identified and suitable measures of output derived, it is possible, although not always easy, to analyse expenditure against the level of activity associated with each variable, and thence derive unit costs per measure of output.These unit costs can then be used to assess the financial implications of alternative plans. Such financial information forms an important element in the assessment of any plan. Indeed, while not the only consideration, it is difficult to see how decision-making can be wholly effective in the absence of an analytical framework for the analysis of institutional costs.Such cost projections also enable average student costs to be determined and projected. The importance of these is that they give an indication of the relative overall efficiency of the institution, in comparison with other institutions operating at the same level.The article uses the Universidad Estatal a Distancia as an example to illustrate the methodology and utility of cost analysis in educational planning and decision-making.