A method for the comparative analysis of the instructional costs of three baccalaureate nursing programs

Cost behavior analysis was used to operationalize higher education cost factors in the analysis of instructional costs of three baccalaureate nursing programs in one state university system. Higher education cost factors were conceptualized by Robinson, Ray, and Turk (1977) to be three: volume, decision, and environment. The 30 variables derived from the three factors were the independent variables used in this analysis to explore their influences on the dependent variables of cost per student credit hour and cost per student contact hour. Instructional costs were partitioned into direct and indirect costs. The data were analyzed in three phases to describe the relative influence of the independent variables on instructional costs within programs, among programs, relative to their respective institutions, and relative to their respective classification of institutions. The findings suggest that volume and decision factors more strongly influence costs than do environmental factors. The mix of volume and decision factors influencing costs differed for the three programs. In general, the most influential volume factors on costs were the number and frequency of course and class offerings. The most influential of the decision variables was student-faculty ratio and faculty rank mix. Higher full-time-equivalent enrollments and higher student credit hour production did not correspond to lower instructional costs, largely because of intervening decision factor variables. All three nursing programs were more costly per student credit hour when indexed to the average instructional expenditures for their respective universities. However, when the nursing program costs were indexed to the average instructional expenditures per full-time-equivalent enrollments of their respective institutional classifications, all three nursing programs were lower than the average. The model of the instructional cost analysis used in this modified case study proved to be effective in identifying sources of higher costs within programs and variations among programs. For student contact hour intensive programs such as nursing, student contact hour, as opposed to student credit hour, is recommended as the more sensitive measure of direct instructional costs.