This document reports results of two applications of an alternative cost model to two-year college education programs. Purpose of the study was to identify nonoperational costs (costs other than instruction) that are not usually found in financial reports. Current educational cost practices report costs by jurisdictional units; the way costs are organized reflects the institution's organization. An alternative method--the functional approach--is described as more revealing of the true costs of a program. Cost studies were performed for two different programs, an occupational therapy program and a college preparatory chemistry program. This report closes with observations concerning implementation of a functional cost analysis, comments about how the two studies will be used internally, and a recommendation for those interested in further developing functional cost analyses evaluations. (Author/LD)