Date of Award
2003
Document Type
Dissertation
Degree Name
Doctor of Education
Department
Programs for Higher Education
Advisor
Buford McWright
Committee Member
Todd Curless
Committee Member
Barbara Packer
Committee Member
Maryellen Maher
Keywords
accounting methods, administrative structures, Chief Financial Officers, community colleges, cost efficiency, cost-effectiveness, Cost Identification Worksheet, course-level costs, direct costs, economic factors, enrollment, fixed costs, Illinois, online courses, online delivery systems, online programs, return on investment, revenues, support services, survey, variable costs
Abstract
This study was concerned with identification, categorization, and calculation of course-level costs of online courses from community colleges of disparate size in terms of enrollment, support services, costing and accounting methods, and administrative structures.
A survey consisting of the Cost Identification Worksheet was administered to Chief Financial Officers at 12 community colleges in Illinois requesting data related to actual, direct, fixed, and variable costs related to online courses. Data were compiled into institutional spreadsheets for analysis and a composite developed of community colleges in Illinois.
The goal of the study was to compare costs and revenues of Illinois community colleges related specifically to online delivery systems in order, first, to determine cost efficiency and return on investment and second, to compare the results among community colleges in Illinois. The research question to be answered was “To what extent are online courses delivered at community colleges in Illinois cost efficient?”
The results of this study do not support the premise that online courses are cost efficient. Two of the 12 responding colleges were determined to be cost efficient. The mean return on investment was –15%. Online programs at 83% of the community colleges participating in the study were not cost efficient and did not provide a positive return on investment.
These findings are not consistent with the literature. Cost-effectiveness was supported in most other studies, but it was noted that costs varied substantially and were influenced by many factors.