Planning for Higher Education Journal

As higher education begins the transition into a period characterized by limited resources and constrained growth, it becomes clear that an assessment of "cost" will become an even more important component of every decision. There will certainly continue to be a demand for the more traditional cost studies conducted for central administrators; however, it is also clear that there is a growing need for an entirely different kind of cost analysis—one intended to aid planners and administrators at the lowest organizational level, the academic department. The purpose of this paper is to examine this type of cost study with an emphasis placed on demonstrating how and why it differs from the standard approach.

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