The purpose of this study is to examine the cost of undergraduate student education in a specificmechanical engineering department. While the numbers will be precisely correct only for theinstitution under examination, the trends will be relevant to most engineering departments. Ofparticular interest is the derivation of a relationship between absorption cost per student andstudent numbers, marginal cost of students in the degree programs, and explicit documentation andcosting of activities in the program. A detailed costing model is developed with three differentcosting. The results clearly show that undergraduate teaching activities in small and medium sizeddepartments can easily lose money.
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