In 1972, a group of French universities began a joint project under the aegis of the Centre for Educational Research and Innovation. Common concerns of the universities - specifically, the rising cost of education, the need for assessing effectiveness and efficiency of programs, and a 1968 law giving increased autonomy to French universities - led to a study seeking to create the first methodological instruments of modern university management based on the preparation of activities and systematic control of their performance. Since the group's needs and organizational structures were different from those addressed by most foreign studies, and lack of information was a significant problem, the French universities decided to concentrate on calculating costs of their final outputs: instruction and research. The costs considered were: personnel, capital, operating, and student aid costs. Several kinds of budgetary control and the application of a simulation model are recommended for management of French universities. (MSE)