Virtual or In-Person Training: Applying Activity-Based Costing in Nursing Education

Background: Cost assessment with modern costing systems can be conducive to the efficiency of education. In this study, activitybased costing was applied to calculate the cost of in-person training for undergraduate nursing students, and to evaluate the adjustable cost in virtual education. Methods: It was a descriptive-applied research using cross-sectional economic analysis based on activity-based costing system. The statistical population included undergraduate nursing students in Lamerd, Iran. Data analysis was performed using the data obtained from a 4-year undergraduate program (2012 to 2016). The data were compiled in three categories, namely educational costs, support costs and cultural-welfare expenditure. The acquired data in faceto- face education were considered as the reference for comparison. Furthermore, the adjustable costs for the alternative e-learning approach were measured. Results: The total training cost at Lamerd Nursing School during the four-year study program stood at US$382,761. The per capita cost in this period was equal to US$13,693. It was measured at US$8,659 for educational activities, US$3,933 for support, and US$1,077 for welfare. Therefore, the highest per capita cost was in the area of education and the lowest cost was attributed to welfare. Furthermore, the curriculum cost in face-to-face training was calculated to be US$664. Finally, it was found that virtual education would reduce the total cost by US$156,199. Conclusion: Activity-based costing system is a new model that helps restructure the financial systems of universities. It enables the senior management in these institutions to make informed decisions on adjusting educational activities based on the information acquired. One of these decisions involves comparing the cost-effectiveness of in-person paramedical training with that of virtual training. This is especially important in adopting modern educational models.