The purpose of this investigation was to design a classification system for determining the operating costs of day care centers for preschoolers. The basic hypothesis of the study was that ownership arrangements and programs of day care centers could both be used to predict such characteristics as variations in clientele, facilities, staffing patterns, and organizational arrangements. A census was taken of 543 state-licensed preschool day care centers in Chicago. Programs were classified according to four factors: (1) Success-Orientation: mastery of skills/mastery of interpersonal relationships; (2) Supervision: directed learning/non-directed learning; (3) Skill Development: fixed tasks/flexible tasks; and (4) Reward-Motivation: operant conditioning/positive reinforcement. The report suggests that the test of accuracy of the cost analysis procedures will be their ability to provide insight into such matters as good management strategies, optimum sizes of day care centers, suitable fee schedules, proper ratios between indebtedness and net income, and appropriate staffing patterns. Evidence gathered to date indicates that the classification system may be used as a predictive device. [Filmed from best available copy]. (AJ)