This report shows in detail how cost analysis of educational programs has been used at the junior college level. The primary objective of the National Junior College Finance Study is to determine the cost of educating a student in a specified curriculum and to utilize these data to demonstrate the relationship of the unit cost of each of several selected vocational-technical curricula to the unit cost of a basic arts and science transfer curricula. Data were gathered from 15 junior colleges in seven states. Although the unit for analysis may vary among types of institutions, the procedures can be readily adopted for use at other levels. If adequate funding is to be obtained for educational programs, then funding based on cost differentials or differentiated funding seems the most feasible at this time. (Author/CA)