The current article aimed at finding out the unit cost per student and cost-effectiveness. It was a case study of most sought after courses, such as Mechanic, Electrician, and Motor Mechanic under the National Council for Vocational Training (NCVT) in an Industrial Training Institute (ITI) located at Takyelpat, Imphal West District, Manipur. The total enrolment (i.e., cohort) for Mechanic and Electrician was 20 each, while for Motor Mechanic, it was 22 students. The expenditure incurred on the salaries of the teachers during two years’ period of the courses 2014-2016 was the basis of cost calculation. The results indicated wastage in all the three courses due to dropout and/or stagnation at varying rates. For Mechanic Course, the effective unit cost was estimated at Rs.75,337 as against the ‘normal’ unit cost of Rs.61,639 with a wastage rate of 55 per cent; for Electrician, the effective unit cost was Rs.75,932 instead of Rs.49,356 with 35 per cent wastage; and for Motor Mechanic, the effective unit cost was worked out to be Rs.97,841 in lieu of Rs.55,909 with a wastage of 64 per cent. Thus, out of a total salary costs of Rs.34,49,910 during 2014-16, Rs.18,06,248 had been lost owing to dropout (18%) and stagnation (34%) with a total wastage of 52 per cent. The generalizability of the findings of the study would merit further investigation. However, it would give us an insight into the situations on the ground of the present institute in particular and other similar institutes in general. Certain measures for improvement had been suggested.