The first of two related pamphlets, this guide provides information on how to conduct cost-outcome analyses, with an emphasis on measuring costs. After an introduction that delineates the purpose of the two-part series, the pamphlet is divided into six major sections. The first section, "definitions and rationale," introduces cost-outcome analysis and describes the differences between four primary types of cost-outcome analyses. The second section, "assessing political and pragmatic readiness," is designed to help determine the readiness of organizations for a cost-outcome analysis. The third section, "measuring program costs," explains how to collect resource data and how to figure costs, while the fourth section discusses assessment of the reliability and validity of the cost data. The fifth section highlights possible uses of the data in terms of cost feasibility analysis. Two appendixes are included: an example of listing of resources, and a sample cost distribution chart. (TE)