Part II of the study describes a model for associating one portion of total library costs with use; the model's output is a set of charges that can be used to recover (justify) these usage-based costs. Algebraic formulations constructed and combined to form the model are a set of service charges that may vary by user type and recover out-of-pocket costs and some variable portion of support costs. Provision is also made for a per capita charge on the user population to recover any variable support costs that are not recovered through the service charges. These algorithms were first used to develop a static model of cost recovery dealing with only a single time period to meet one period budget, and then adapted to illustrate how it can be used to cover multiple time periods. The model was run using an estimated line item budget, and generated overall usage data by institution, unity charges output, consequent usage-based assessments to each institution by service, and the total assessments. The non-variable or fixed support costs that are to be recovered through fees charged to institutions housing groups of members are modeled and analyzed in Part III. (Author/JPF)