Objective cost estimates for planning and operating systems should be made after an assessment of administrative factors (school environment) and instructional factors (learning objectives, type of presentation). Specification of appropriate sensory stimuli and the design of alternative systems also precede cost estimations for production, distribution, and reception. Researchers define a hypothetical educational task as a basis for cost comparison of alternative systems, excluding computer-assisted instruction (CAI) from assessment charts. Cost-saving considerations modify the utilization and technology of media systems and the organization of educational systems. An appendix to Volume I presents methodology for estimating costs, a summary of CAI applications and expenses, and educational environment models. (TI)