Cost Analysis of Distance Learning

Abstract

This article outlines the technological development of distance education and the affect that these developments have had on the cost-efficiency, costutility, cost-effectiveness, and cost-benefit of distance education institutions and systems. It endorses the view that some forms of distance education can result in lower unit costs than those of classroom-based instruction, while pointing out some of the factors that determine whether or not this is so. There is, however, little evidence about the relative costs of information-technology-based distance education. The article also suggests that flexible learning approaches within a campus setting may be a more cost-efficient option than purpose-built distance education approaches (though more research is required here). Finally, it points out why decision makers find little practical guidance in the case studies to date and where areas of future research might focus.