Cost, resource utilization, and productivity were studied in 41 elementary schools using Individually Guided Education (IGE) and in 15 matched pairs of IGE and non-IGE schools. Instructional expenditures in IGE and non-IGE schools did not differ significantly. However, IGE teachers devoted significantly more time to individual instruction. A production function approach identified the input and process variables most related to achievement in reading and mathematics and student self-concept. Several variables were consistently related to student achievement: (1) teachers' involvement in a degree program; (2) years of teaching experience; (3) teachers' sex; (4) students' maturity; (5) students' social confidence; (6) teachers' perception of the principal's leadership; (7) teachers' job satisfaction; and (8) teachers' involvement in decision making. A set of 12 independent variables accounted for 78% of the variance in reading achievement and a similar set of 12 variables accounted for 71% of the variance in mathematics achievement; all of these variables were susceptible to control by teachers and administrators. Another similar set of 12 variables accounted for 72% of the variance in social confidence scores; these variables reflected the ambience of the school rather than specific instructional processes. (Author/GDC)