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Institutional cost refers to the expenditures incurred by educational institutions and governments to provide education that are not directly paid by students. These costs are divided into recurring costs like salaries and non-recurring capital costs. An analysis of institutional education costs examines the objectives, inputs, internal processes, outputs, benefits, and classifies costs into categories like capital equipment, non-divisible operating, and divisible operating costs. Techniques to analyze these costs include distinguishing between resource and money costs, capital versus recurrent costs, calculating unit costs per student, and determining factor costs of subsystems, processes, and outputs.




