Introduces this topical issue on costs in higher education with an overview of the economics of higher education. Considers various types of supplier costs (opportunity versus accounting costs), various ways of determining costs (cost accounting, statistical estimation, and modeling), and factors that influence supplier costs (environmental…

Efforts of the University of Massachusetts at Amherst illustrate the use of cost information in decision-making. The Instructional Cost Index can be used to determine the unit costs of instruction and, combined with information from an induced course load matrix system, can provide data on the costs of programs. (LBH)

A review of the elementary ideas that are fundamental to most higher education resource models and necessary for understanding model-supported cost analyses. Analytic constructs providing information for policy decisions include the elementary model, the fundamental cost model, and the instructional cost index. (JT)

Approximately 170 references on cost analysis and construction are cited, divided into four topic areas: costs analysis in health professions education; planning in health professions education; cost analysis in higher education; and planning in higher education. (LBH)

The ability to analyze and construct the cost of existing or developing programs is a powerful tool for planning the allocation of scarce resources. Implications for health professions education programs are discussed and the major elements affecting the cost per student are described. (Author/LBH)

For budget planners, undergraduate tuition is an extremely important price as the largest income item and one over which the institution has substantial control. Although several factors affect price, the programs' cost structures is the most significant. Also, budget developers can unbundle cost elements to price services and programs separately.…