A model of cost-effectiveness is outlined which enables consideration of some non-financial, as well as financial, elements of educational systems at school or district levels. The model enables the decision-maker to compare educational outcomes of different units, to assess the impact of alternative levels of financial input, and to select alternative approaches to reach specified educational outcomes. Components of this model are student inputs, educational outputs, financial inputs, external systems, and manipulatable characteristics. Indicated are the potential applications of the model in different evaluation situations and its use to evaluate the cost-effectiveness of various financial inputs and of individual school programs. Related documents are EA 002 407 and EA 002 475. (Author/MLF)