THE AUTHOR STATES THAT UNIT COSTS ARE MEASURES AND STANDARDS OF BUDGETING AND ARE USED TO DIRECT ATTENTION TO PROBLEMS AND AID IN THE SOLUTION OF THOSE PROBLEMS. UNITS FOR COSTS COULD INCLUDE STUDENT CREDIT HOUR, DEPARTMENT COSTS, COST BY LEVEL OF INSTRUCTION, ETC. COSTS IDENTIFIED WITH INSTRUCTION WOULD BE FACULTY TIME. WORKLOAD AND COST INFORMATION IS DATA PROCESSED AND IS DERIVED FROM THREE BASIC CALCULATIONS--(1) WEEKLY TEACHING HOURS, (2) WEEKLY STUDENT HOURS, AND (3) SEMESTER HOURLY RATE. UNIT COST FIGURES CAN BE USED FOR COMPARISON WITHIN OR BETWEEN INSTITUTIONS. THIS ARTICLE IS A REPRINT FROM THE JOURNAL OF EXPERIMENTAL EDUCATION, VOL. 31, NO. 2, DECEMBER 1962. COPIES MAY BE OBTAINED FROM THE PUBLISHER, DEMBAR EDUCATIONAL RESEARCH SERVICES, INC. P.O. BOX 1148, MADISON, WISCONSIN 53701. (JP)