This paper describes cost models designed to aid schools in effective cost planning through analysis of the relative costs and benefits of individualized, computer-based instruction. The models are then applied to the Individualized Study by Technology (IST) program of the Alaska Department of Education (DOE) using data obtained in a pilot study of four microcomputer-based high school courses at 24 rural school sites in Alaska during the 1980-81 school year. Illustrations include the analysis of DOE and local site costs for the pilot study; prediction of costs of expanding the number of courses, sites, and students that will use the materials; and comparison of the costs and benefits of the multimedia program to traditional methods. The conclusions presented indicate that, on the basis of costs, offering computer-based instruction is preferable to more traditional, teacher-based instruction, but that the computer-based program did not produce better learning. Data related to the models and the IST evaluation are displayed in six tables and eight figures, and eight references are listed. (LMM)