Important to the cost analysis process is prior consideration and precise description of the scope of the activity and the tasks to be included so that proper methodology can be applied and the data can be collected with consistency and accuracy. The preparatory steps involved in doing a cost study, particularly in the area of cataloging in a large research library, include the definition of the cataloging activity and its subdivision into categories of employee tasks; the determination of the summary cost measures which will be used--average unit cost, cost range, or man hours expended; and the specification of exactly what constitutes the unit of output. Cost analysis may provide significant information to the administrator making decisions about cataloging; but it may not be all the information he needs. (KB)