A major challenge in higher education is to build evaluation models that first of all spell out various effectiveness measures and then related cost data. The Program Effectiveness and Related Costs (PERC) framework addresses this problem. The five components of PERC are outcomes, costs, students, learning programs, and faculty. An overview and discussion of the PERC model points out certain minimum tasks that must be completed to build relationships between program effectiveness and related costs. These tasks are: (1) trace what happens to students while attending the institution and how much money is spent from all sources in various programs to achieve results; (2) obtain data on specific intellectual and personal attributes of students on entry and completion of their programs; (3) collect data about student change and development from at least two sources; (4) use two types of measurements, quantitative and qualitative, to study and evaluate student change and development; (5) interpret and evaluate data from two points of view. The result will be a major rethinking of institutional priorities and adoption of new ways of allocating scarce resources. (Author/KE)