E-Learning is widely used to facilitate and enhance learning in higher education. For developing any e-learning program, direct and indirect costs associated with digital learning content should be measured. Normally, over 60% of total e-learning costs are spent on design, development, publication and evaluation of learning content. However, the rapid growth of high quality digital content has become a challenge to tertiary education institutions. This paper discusses the employment of new technology known as learning objects for creating cost effective learning content. By investigating essential factors that affect learning content development, variables influencing the development cost are identified. Identified variables associated with content development process are prioritized based on the extent and significance of each variable in the context of dasiacostpsila. Through taking control of these seemingly controllable variables, the content development cost can be minimized and thus cost effective learning content can be created.