Abstract: As the competitive factor of education market is being perfected, the terms such as “determine the price according to the quality” and “cost accounting”, which reflect the market law, are being popular in schools. How to improve the accounting of educational cost will certainly be the focal point of the financial administration in colleges and universities. However, since the accounting of educational cost, which is only being studied in the accounting circles, has not been set up in the present accounting system in colleges and universities, no standard for educational cost is available. The author thinks that in order to strengthen the administration of the educational cost we must follow two principles: the principle of cost administration and the principle of cost distribution. Due to the diversity of TVU’s school-running ways and the complication of its administration of the educational cost, the paper argues that different administrative ways ought to be carried out, which means that businessized administration may be carried out in some departments if conditions permit, while a purposive economy system of responsibility should be spread in all the departments. In short, in order to reduce the educational cost, a cost consciousness must be cultivated among the personnel, not only among administrative members, but also among teachers and staff members. The latter influences the occurrence of cost and is the motive force of long-term cost
Key words: TVU, educational cost, cost administration.