Disregard to human traits while accounting?

Sometimes, I am not able to understand the standards of accounting at all! The place where I used to learn French was non-profit, but still I believe they do look at minimizing losses (since of course language institutes can never run at profit!). They used to charge extremely low, and if I compare it with a similar non-profit which used to charge at least three times to students learning German, located in the same city, then it really moves me to pity sometimes. An argument can be put forth, that if the fees were higher, it would be a turnoff for students (besides being harsh on someone who really wants to learn the language). I know that many who even complete all their levels are really not passionate about the language; they just drift. But then there are some who find it so tough and are at least that honest to themselves that rather than drift meaninglessly they drop out, and I think it is this student crowd that the institute must charge higher, because otherwise the libraries remain more poorly stocked, there are fewer film screenings, and fewer lights glowing somewhere.

Now what I've seen over the years is that the advanced levels have higher fees! And that's true even if they have teachers competent to teach at any level, so it's not a matter of having more expensive teachers for higher levels. And even if an institute follows the policy of paying a teacher a surcharge if she takes a higher-level course, then also I believe that this surcharge must be accrued from the fees of lower-level students, rather than that of higher-level ones. Simply because at the initial two levels, and especially the first, if there is a batch of 30 students, 20 or more are simply there because it's fashionable to learn French. They will drop out now or by the second level! The other 10 might suffer at this stage, but rather than keeping the fees low at all levels or spiking fees at higher levels, the costs should be covered here, since an institute also has a duty to see to that it is running and that the students who really want to learn are better served.