Monday, November 17, 2008

Should DL Pay for the Lights?

There are some clear costs associated with distance and online programs; administrative staff, faculty, course development and redevelopment, and technology are examples. However, in a model in which DL is a self-supporting cost center, hidden institutional costs should be considered. These include office space for administrative staff and utilities. Even though DL may bring much difficult-to-quantify benefit to an institution through increased enrollments and savings in classroom space, a true cost model will include some overhead for the institution. Such costs should perhaps not be assessed until the program is meeting its other costs, but should be considered in long-term planning.

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