While the demand for increased educational productivity is clear, the methods for achieving it are largely undetermined. Cost effectiveness techniques have proved to be valuable tools for commercial organizations, but the relevance to educational problems is less than clear. Theory suggests that these techniques can be useful for dealing with small, specific educational problems. (A study of large scale simulation models for university planning concluded that the cost required to implement the model exceeded the savings achieved through the use of the model.) Cost analysis is possible only where objectives can be stated and where more than one method can reach those objectives. Although some educators deny it, this situation does exist in education. At present, however, evidence indicating the reliability and accuracy of cost effectiveness techniques applied to instructional systems simply does not exist. Empirical data on this question is needed. The technique must be applied before it can be judged. The test of its worth is whether money is saved or lost. (JK)