In the past decade institutions have been troubled with problems of increasing enrollment and increasing expenditures. This study proposes to identify common cost patterns as a guideline in determining approach to full utilization of resources. This research will assist government policy makers to identify institutional educational resource requirements in order that they may promote and affect legislation to assist public and private institutions of higher education. The study concentrates on 362 institutions in the Northeast United States for the Fiscal Year 1964, supplemented by data from 1962 and 1967. For analysis, the institutions are stratified by type, control and the selectivity level of student. Variations in educational operating expenses are reviewed in light of changes in the enrollment mix, staffing and physical plant. Certain implications for higher education institutions have evolved from the study. Two of the more important are: 1. The productivity of the individual faculty member needs to be increased without increasing class size and capital cost. 2. There appears to be sufficient evidence to indicate that no institution should enroll less than 1000 students. Implications for government are: 1. Aid to post-secondary institutions needs to consider the variations in educational operating costs and yearly plant costs. 2. Given plant space additional students could be accommodated in private institutions at less cost. (ON)