The first section of this report on program costing with the CAMPUS simulation discusses the structuring process of Program Planning and Budgeting (PPB) systems, and emphasizes the ideas, rules, and principles for structuring resource data that have evolved during the 10 years of PPB existence. It also discusses the WICHE-PMS program classification structure that has been developed to provide a consistent means of identifying and organizing the activities of higher education in a program-oriented manner. The basic issue revolves around whether the grouping of an institution's activities (particularly those related to instruction) into discipline divisions and discipline specialties is a more appropriate output-oriented format than grouping the activities by degrees. The second section: Program Costing and the CAMPUS model describes 4 procedures to handle the conversion of resources from the CAMPUS-V model, and where the resources are developed for departments to an output-oriented format. The 4 processes are: (1) service department process; (2) activity/curriculum process; (3) nonteaching duty process; and academic indirect resources process. (AF)