Introduction 6

Why measure costs of education programs? 8

Harmonized set of key concepts 10

Cost measurement framework 13

  Costing process 13

  Applications of the framework 15

How different stakeholders can use cost evidence 18

Data collection standards 21

  Costing methodology 21

    The ingredients method 21

    The activity-based method 22

    The expenditure-based method 23

    The hybrid approach 23

    Decision tree: Which method to use 24

  Timing of cost data collection 27

  Cost categorization 28

  Logic model use 29

  Data collection protocols 30

Data analysis standards 32

  Analysis methods 32

    Cost-economy analysis 32

    Cost-efficiency analysis 33

    Cost-effectiveness analysis (CEA) 33

    Cost-feasibility analysis (CFA) 34

    Cost-utility analysis (CUA) 34

    Cost-benefit analysis (CBA) 34

  Cost adjustments 35

    Discounting 35

    Amortization, annualization, and depreciation 36

    Currency conversion and inflation adjustment 36

  Perspectives 37

  Shared costs 38

  Costing in-kind contributions 39

  Managing missing data 40

  Sensitivity analysis 41

Reporting and publication standards 42

Dissemination best practices 46

Conclusion and next steps 47

Annex A. Resources and references 49

  Key resources 49

  Additional resources 50

  References 52

Annex B. Glossary 53

  Terms relating to the concept of “cost” and “cost analysis” 53

  Terms relating to methodologies of cost analysis 54

  Other related terms 55

Annex C. International frameworks for classifying and reporting education programs and expenditures 57

  International Standard Classification of Education (ISCED 2011) 57

  Classification of the Functions of Government (COFOG) 58

  UNESCO-OECD-Eurostat (UOE) data collection 58