The purpose of the document is to explain how managers can use cost and output data to obtain information which will help them utilize resources wisely. It points out what numbers of manager needs to know and distinguishes between data and information. Data must be organized to enable comparisons to be made and relationships identified. Conceptual problems in collecting and interpreting cost and output data are discussed. Much of the information does not require a formal application of statistical procedures, and while the remarks are directed toward government managers, they have wider application. Attention is given to defining analysis, who performs analysis and why, techniques of analysis, cost analysis, data analysis, and establishing a data base. The concluding section provides three case histories exemplifying uses of analysis. (Charts, graphs, and tables are used to illustrate concepts.) (AG)