There have been four objectives to this preliminary study on cost analysis procedures in higher education: to examine and evaluate materials on cost analysis recently gathered; to explain the basic techniques of cost studies and the uses to which they are put; to identify, if possible, the specific value of cost analysis as an administrative tool; and to determine whether the cost figures supplied by various institutions can be used to make interinstitutional cost comparisons. The body of the report is concerned with the second and third objectives. The relevant materials listed, with brief annotations in the bibliography, form the basis of the general discussion in the report. Cost analysis in higher education is a melange of conceptual, procedural, and political problems to which one cannot do justice in a single report. It has been an underlying assumption of this study that its function would be to raise general questions that, in turn, might suggest specific investigations. (Author/PG)