A study on costing of an open learning course: Sri Lankan case study

An important financial aspect in open and distance learning (ODL) systems is the need to manage investments. The ODL systems, especially those which produce print materials, tend to have higher fixed costs and longer financial planning. This study investigates cost structures, emphasizing on cost per course and cost per student at similar local centers. At local centers, student support is through face-to-face and Tutor Marked Assignments (TMA) at the Open University of Sri Lanka (OUSL). The knowledge of how much it costs to develop, deliver and evaluate student an ODL course will help academics and governing authorities in making informed decisions on various aspects including whether the mode of present delivery needs upgrading to an online method where the benefits of technological advances could be captured. Interviews, structured open-ended questionnaires and the relevant financial circulars/reports at OUSL were used to collect data. Data from relevant divisions, OUSL Press, local regional and study centers were used. Finding shows that, costs of instruction delivery amounts to 40% and production amounts to 35% of the total cost. Course development, costs 9% and evaluation and overheads costs, 9% and 7% respectively. The unit cost (cost/learner) was LKR 2669 for the evaluated course. However, the tuition fee charged from each student in 2010/2011 for the above course was LKR 2403.00 which is LKR 266.00 lower than the calculated cost per student for this study. It is necessary to look into pricing, in this context, for courses with short shelf lives at OUSL, urgently.