A study identified costs and benefits of different approaches to adult basic education (ABE) in Scotland and elements that contributed to effective delivery. Study procedures included reanalysis of results of a previous survey, interviews with directors in regional education authorities, a telephone survey of ABE providers, and detailed study of six providers. Providers were local education authorities, further education colleges, schools, employment training schemes, and voluntary agencies. Financial information did not exist to provide a full costing of ABE. Case study data were used to calculate these unit costs: cost per course, student, hour of tuition, and student hour of tuition. Participants paid higher personal costs on some programs in terms of the possible embarrassment of admitting they lacked basic skills. The most expensive item was the cost of professional staff; the most expensive schemes were aimed at nontraditional learners. Benefits were as follows: communication and computational skills, social/life skills, work-related skills, qualifications, further training, and employment. Effective courses included the following elements: a structure and philosophy that encouraged learners to enter, progress, and take responsibility for their own learning; a relevant curriculum; a variety of methods; tutors who built teaching and learning around what motivated learners; and continuing support and training for staff. Suggestions for improvement included open-entry/open-exit opportunities and innovative projects aimed at nonparticipants. (YLB)